Although closely watched legislation to reform U.S. housing finance has been delayed, one of the bills co-sponsors is still optimistic.
The Senate Banking Committee postponed a scheduled markup of S.1217, the Housing Finance Reform and Taxpayer Protection Act.
At the center of the postponement are differences between Democrats on the committee, which is chaired by South Dakota Democrat Sen. Tim Johnson — a co-sponsor of the bill.
A statement from the other co-sponsor, Sen. Mike Crapo (R-Idaho) , indicated that the delay was due to an attempt “to garner even more broad support.”
The proposed law, which was first announced in March, would eliminate Fannie Mae and Freddie Mac and replace their regulator, the Federal Housing Finance Agency, with a new insurance company known as the Federal Mortgage Insurance Corp.
Crapo thanked Sen. Bob Corker (R-Tenn.) and Sen. Mark Warner (D-Va.) for their earlier bill that helped get the current bill to this point.
“Housing finance reform remains the most significant piece of unfinished business from the 2008 financial crisis,” Crapo said. “Fannie Mae and Freddie Mac greatly contributed to a housing bubble, to the financial crisis and the dramatic government intervention that resulted.”
Crapo noted that due to the majority committee support for the bill, he’s confident the legislation can get back on track.
Warner issued a statement saying that 18 months of work have led to the current proposed bill.
