BPC Action Applauds Sen. Toomey’s Efforts to Restart Bipartisan Negotiations on Housing Finance Reform in Housing

BPC Action released the following statement in response to the housing finance reform principles released by Senate Banking Committee Ranking Member Pat Toomey (R-PA)

“Fannie Mae and Freddie Mac were major players in the financial crisis and massive, multidimensional cases of the ‘too big to fail’ problem. Despite congressional attempts to pass legislation, they remain in conservatorship, risking taxpayer losses in another market downturn. 

“BPC Action applauds Sen. Toomey for calling on Congress to tackle housing finance reform and offering to work with congressional Democrats and the Biden administration to that end. Only by working across the aisle can Congress build a safer, more sustainable housing system and protect taxpayers. 

“Every year that passes without a resolution, the risk that policymakers must act hastily in another crisis increases. Reforming our housing finance is too important to America’s families for that to happen. 

“Sen. Toomey’s principles reflect previous areas of consensus, including priorities articulated by BPC’s Housing Commission eight years ago—an end to the conservatorships of Fannie Mae and Freddie Mac; a greater role for private capital in assuming mortgage credit risk; a continued, but more limited, role for the federal government as the insurance backstop of last resort in the secondary market for mortgage-backed securities; and a commitment to ensuring equitable access to affordable mortgage credit. BPC will continue to work on building support for these and other key reform elements needed in a future housing finance system, with the goal of advancing bipartisan, consensus-driven reform legislation. 

“Sen. Toomey’s thought leadership on these issues will be needed to finally achieve a successful legislative outcome and ensure continued access to stable, affordable mortgage credit. BPC Action stands ready to help accomplish this effort in a bipartisan way.”