The House Financial Services Housing and Insurance Subcommittee held a hearing on November 2 that focused on private sector perspectives on housing finance reform. This was the second such hearing on the topic. The witnesses spoke about the need for immediate and comprehensive housing finance reform that maintains government guaranteed loans, allows Fannie Mae and Freddie Mac to maintain capital buffers, and ensures access to affordable credit.
Sarah Edelman of the Center for American Progress (CAP) stated that the housing finance system should promote access and affordability to lower income families of all racial and ethnic backgrounds. In her written testimony, Ms. Edelman explains that the national Housing Trust Fund (HTF), Capital Magnet Fund (CMF) and Market Access Fund are “important for creating affordable rental and homeownership opportunities for families across the country.” CAP supports expanding the funding for these three programs by a 10 basis point fee on all outstanding mortgage securities that would be established through housing finance reform.
Despite the topic of the hearing, committee members and witnesses also talked about the impact the House Republican tax proposal could have on housing and discussed the mortgage interest deduction and Low Income Housing Tax Credit.
Learn more about the hearing at: http://bit.ly/2zcoXlW