[StBernard] Frank and Kanjorski Announce September Housing Finance Hearings

[Westley Annis]

July 29, 2010                                                  

 

Frank and Kanjorski Announce September Housing Finance Hearings

5 hearings held this year so far; more work on restructuring the GSEs to
come

 

            Washington DC-House Financial Services Committee Chairman Barney
Frank and Capital Markets, Insurance and Government Sponsored Enterprises
Subcommittee Chairman Paul E. Kanjorski today announced that the committee
will continue its series of hearings on the future of housing finance in
September.  Chairman Kanjorski will conduct an oversight hearing of the
GSEs, and the full committee will continue its examination of policy options
for restructuring the nation's housing finance system.

 

"By passing the legislation in 2008 that allowed the Bush administration to
put the GSEs into conservatorship and by finally enacting strict
prohibitions against the sort of reckless, predatory and subprime loans that
have been made in the mortgage market, we have completed the initial,
defensive steps needed in the housing area.  We will continue our efforts as
we move to the next phase, a complete restructuring of the tangle of housing
finance tools so that we move forward in a way that protects taxpayers,
prevents economic turmoil and appropriately serves all aspects of the
housing market," said Chairman Frank.

 

Said Chairman Kanjorski: "The landmark Wall Street reform law has laid the
foundation for reforming our housing finance system by altering
securitization rules, protecting against inflated appraisals, and holding
rating agencies accountable.  The Capital Markets Subcommittee has already
convened several hearings about the future of housing finance, and in
September we will examine taxpayer protection issues in greater depth.  In
particular, we intend to explore the Federal Housing Finance Agency's recent
efforts to recoup funds from the issuers of the underwater securities
purchased by Fannie Mae and Freddie Mac.  We also will examine the present
policies related to calculating guarantee fees, including whether these
charges are appropriately priced to cover risks and provide a reasonable
return.  Moreover, as our housing markets begin to stabilize, we will begin
to consider innovative ideas for recovering the costs resulting from the
decision to place Fannie Mae and Freddie Mac into conservatorship.  Twenty
years ago, we found a way for industry to pay back the sizable U.S. Treasury
payments for resolving the savings-and-loan crisis.  We can do it again."

 

Previous hearing transcripts and testimony are available on the Financial
Services Committee website <http://financialservices.house.gov/Hearings/> .

 

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