Hearing of the House Financial Services Committee - FHFA Oversight: Current State of the Housing Government Sponsored Enterprises

Statement

Rep. Shelley Moore Capito, R-W.Va., Ranking Member of the Subcommittee on Housing and Community Opportunity, today continued her call for Government-Sponsored Enterprise (GSE) reform in an opening statement at the House Financial Services Committee hearing titled, "FHFA Oversight: Current State of the Housing Government Sponsored Enterprises."

"Mr. Chairman, thank you for convening this hearing today. This Committee should be having more hearings on the future of housing finance and the role of the Government Sponsored Enterprises, Fannie Mae and Freddie Mac.

"While we are sitting here today with the director of the Federal Housing Finance Agency, the future of regulatory reform is looming over this Congress. The Senate has acted and we are now heading to Conference. Unfortunately, neither the House nor Senate package addresses one of the major causes of the financial downturn: the role of Fannie and Freddie in our mortgage markets. These entities now owe the American taxpayers a total of $147 billion, and last Christmas Eve, the administration announced they were removing any limits on the use of federal funds to cover the losses of the GSEs.

"This is a missed opportunity for the nation. The troubles in the mortgage markets were at the root cause of the financial downturn, yet the current administration does not seem willing to acknowledge the serious need to start working on plan for the future of housing finance.

"House Republicans on the Financial Services Committee have worked together on a list of goals and principles for GSE reform. We stand ready to work with our colleagues to properly reform the GSEs and create a system where taxpayers are no longer on the hook for the losses of Fannie and Freddie.

"Again, I thank the Chairman and look forward to hearing from Director DeMarco."

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