01 Feb BPC Action Applauds Sen. Crapo’s Efforts on Moving Housing Finance Forward in Housing

BPC Action released the following statement in response to the housing finance reform outline released by Senate Banking Committee Chairman Mike Crapo (R-ID):

“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.

“We applaud Chairman Crapo for continuing to push Congress to tackle housing finance reform in a responsible and bipartisan way. 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.

“Chairman Crapo’s outline reflects many objectives proposed by the Bipartisan Policy Center Housing Commission six years ago—the gradual wind-down 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 access to safe and affordable mortgages for all borrowers in all geographic markets. BPC will continue to work on building bipartisan support for these and other key reform elements needed in a future housing finance system.

“Chairman Crapo’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. We stand ready to help accomplish this effort in a bipartisan way.”