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May 23, 2007

NAR Applauds House Passage of GSE Bill

Washington, DC- The Federal Housing Finance Reform Act of 2007, H.R. 1427, passed by the House today, is vital in protecting the nation’s housing finance system and the real estate market, according to the National Assn. of REALTORS ®. The legislation overhauls the regulatory structure of the nation’s housing finance government-sponsored enterprises (GSEs).    

“H.R. 1427 strikes the appropriate balance and creates a world-class regulator while not imposing statutory limitations on the GSEs’ portfolios, which could hurt the housing finance market and limit funds available for affordable housing,” noted Pat V. Combs, president of NAR.

“Fannie Mae, Freddie Mac, and the Federal Home Loan Banks are our partners in the real estate industry and keeping them strong and sound ensures the continued vitality of our nation’s housing finance system.  NAR will eagerly work with the Senate to encourage their quick action,” said Combs.

The bill focuses on safety and soundness regulation while preserving Fannie Mae’s and Freddie Mac’s abilities to accomplish their key housing mission.  H.R. 1427 provides for regional adjustments to the cap on mortgages the GSEs may buy for high-cost areas.  “This authority will help more working families in high-cost areas qualify for safer GSE loans. Veterans, teachers, and nurses are examples of those who may benefit by not being forced into expensive nontraditional jumbo loans because this legislation would allow GSEs to regionally adjust loan limits,” said Combs.

NAR gave special thanks to Chairman Barney Frank (D-MA) and Representative Spencer Bachus (R-AL), and the members of the House Financial Services Committee, for their unyielding commitment to making the dream of homeownership a reality for more Americans by passing the bill.

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