Chairman of the Senate Banking Committee Chris Dodd, D-Conn., and Ranking Member Richard Shelby, R-Ala., have reached an agreement on The Federal Housing Finance Regulatory Reform Act of 2008. According to the committee, the bill includes major efforts designed to reduce the number of foreclosures in the U.S., create more affordable housing, and reform the regulation of the government-sponsored enterprises (GSEs) in order to improve their role in the housing finance system.
‘This legislation is good news for both the markets and homeowners,’ says Dodd. ‘The bill addresses the root of our current economic problems – the foreclosure crisis – by creating a voluntary initiative at no estimated cost to taxpayers which will help Americans keep their homes. The bill also establishes a new fund that will help create more affordable housing for millions for Americans.
‘Finally, this legislation takes a balanced approach toward reforming the GSEs, creating a world class regulator with enough authority to help these vital institutions operate in a safe and sound manner, while better fulfilling their important mission of providing affordable housing for Americans,’ he continues.
‘In my judgment, the new GSE regulator created under this legislation would be granted much needed authority and flexibility to regulate the GSEs appropriately,’ adds Shelby. ‘Ultimately, a strong regulator will better serve the interests of homeowners and taxpayers for years to come.’
The committee is expected to resume consideration of the legislation shortly.
Source: Senate Banking Committee