Arizona congressman David Schweikert, Chairman of the House Small Business Subcommittee on Investigations, Oversight and Regulations, introduced the Jumpstart GSE Reform Act. H.R. 2348 addresses two major concerns in the housing reform debate.
The bill will prohibit the use of increased Fannie Mae or Freddie Mac guarantee fees (g-fees) for the purpose of deficit reduction except as it relates to GSE business functions.
It also provides oversight and accountability by ensuring congressional approval on any change in the conservatorship status of the GSEs, including a public offering. This provision is critical as the Senate and the House address housing reform.
Schweikert said, “It has been five years since the housing crisis forced the GSEs into conservatorship. In that time, we have seen the market go from peak to valley.”
“Now that we once again see signs of life in home values, I am concerned that the Administration sees Fannie and Freddie as cash cows to pay for big government spending,” he continued. “We’ve seen this once before, and are now watching as the Treasury Department freely spends GSE profits.”
“At the same time, the American people need the reassurance that Congress will have the opportunity to reform the housing market and allow private capital to flow back into private label securitization. This bill ensures that,” said Rep. Schweikert.