House GOP Bill Spells Plans for Major FHA Reform, “Right-Sizing”

Legislation announced today by House Financial Services Committee Chairman Jeb Hensarling (R-TX) spells out a defined plan for reforming the Federal Housing Administration and “right-sizing” the agency which has of late dominated the U.S. housing market. 

Among the plans for reform outlined in the Protecting American Taxpayers and Homeowners Act: ending the bailout of Fannie Me and Freddie Mac by phasing them out over five years; driving competition by ending the government’s majority participation in the housing finance system; and providing more consumer choice in mortgage products. 

“House Republicans are committed to fixing the failed housing finance system that required the biggest taxpayer-funded bailout of all time – nearly $200 billion for Fannie Mae and Freddie Mac,” Chairman Hensarling said. “America needs a housing policy designed for homeowners and taxpayers—not for Wall Street and the housing industry.”

Advertisement

The bill announcement was met with support from republican members of Congress, but opposition from some policy experts, one of which called the plan a “sideshow.” 

“Chairman Hensarling has released the ultimate right-wing wish list, turning the entire mortgage market over to Wall Street lock, stock, and barrel,” said Center for American Progress Director of Housing Finance and Policy Julia Gordon. “It’s a politically motivated sideshow that ignores the general consensus forming around the government’s role in a responsible market and threatens not only the nascent housing recovery but also prospects for overall economic growth.”

View a summary of the bill

Written by Elizabeth Ecker

Join the Conversation (2)

see all

This is a professional community. Please use discretion when posting a comment.

  • Even if Congress passes this bill (a big question), will the President actually sign it or is this merely part of the mid-term Congressional political election process? By the time this bill goes through Congress, we could have a new Congress.

  • This is truly a waste of time. My favorite part of the proposal is where he wants to prohibit FHA loans being issued in municipalities where “eminent domain” has been used in the preceding ten years. Really? I can’t get a reverse mortgage on my home because my town took a property by eminent domain 7 years ago. Clearly a well thought provision of the bill. Americans need to demand their leaders stop wasting time creating new political theory, a whole new extreme, and get down to the business of fixing the true housing issues on the horizon.

string(102) "https://reversemortgagedaily.com/2013/07/11/house-bill-spells-plans-for-major-fha-reform-right-sizing/"

Share your opinion