Federal Housing Finance Reform Act Of 2007

Floor Speech

FEDERAL HOUSING FINANCE REFORM ACT OF 2007 -- (Extensions of Remarks - May 25, 2007)

* Ms. McCOLLUM of Minnesota. Mr. Chairman, I rise today in support of H.R. 1427, the Federal Housing Finance Reform Act, and commend Chairman BARNEY FRANK for his hard work to develop a comprehensive, bipartisan government-sponsored enterprise, GSE, reform bill.

* This legislation will restore accountability by strengthening federal oversight of Fannie Mae, Freddie Mac, and the 12 Federal Home Loan Banks. It will consolidate regulation of the housing GSEs under the Federal Housing Finance Agency, a new, independent agency. The Federal Housing Finance Agency will be authorized to adjust the enterprises' risk-based capitol and even limit the size of their portfolios for a limited time, if necessary to ensure their safety and soundness.

* H.R. 1427 also establishes an Affordable Housing Fund, which will be financed by a required contribution from Fannie Mae and Freddie Mac of only 0.012 percent of their total mortgage portfolio each year. The fund will annually contribute approximately $500 million to the construction, maintenance, and preservation of affordable housing.

* The Affordable Housing Fund is an important step toward ensuring access to safe, affordable housing for all Americans, regardless of socioeconomic status or geographic region. In its first year, the funds will be used entirely to build much-needed homes throughout the region devastated by Hurricane Katrina. In subsequent years, the grants from the fund will be administered by states, and Minnesota will receive an estimated $6.5 million each year to build affordable housing for the most vulnerable families.

* I applaud Chairman FRANK for bringing forward a comprehensive and fair bill. I am particularly pleased that in contrast to last years' efforts, H.R. 1427 does not include language restricting faith-based and nonprofit organizations from receiving affordable housing funds for participation in nonpartisan voter registration and get-out-the-vote activities. Congress should put the needs of American families before political ideology, and this bill does just that.

* The Federal Housing Finance Reform Act has the support of the Bush Administration, as well as Fannie Mae, Freddie Mac, numerous other financial institutions, lenders, realtors, housing advocates, and many other housing organizations.

* Access to safe and stable housing is a basic need and one that no individual or family should ever be denied. I urge my colleagues to join me in voting for H.R. 1427.

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