The National Association of Home Builders (NAHB) today commended House Financial Services Committee Chairman Jeb Hensarling (R-Texas) for working with lawmakers across the political aisle to develop a legislative framework to move housing finance reform forward.
“We support many aspects of the Bipartisan Housing Finance Reform Act of 2018, and are especially pleased that the draft legislation includes an explicit government backstop that assures market participants that the federal government will maintain stability, keep credit flowing and make investors whole in catastrophic circumstances,” NAHB CEO Jerry Howard said in testimony before the House Financial Services Committee.
“NAHB believes an explicit federal government guaranty is particularly important to the continued availability of the 30-year fixed-rate mortgage, which has been a staple of the U.S. housing finance system since the 1930s, and we appreciate that the preservation of the 30-year mortgage is emphasized in this draft bill,” Howard added.
With Fannie Mae and Freddie Mac languishing in conservatorship for the past decade, NAHB has been a strong proponent of comprehensive housing finance reform.
“We look forward to working with Congress to pass bipartisan housing finance reform legislation that will bring the flow of private capital back into the marketplace, ensure creditworthy borrowers have access to mortgage funding, preserve the successful multifamily housing finance framework and maintain the proper level of government support for housing in all economic and financial market conditions,” said Howard.