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Monday, March 17, 2014

Summary of Newly-Released Housing Reform Bill

Summary of Newly-Released Housing Reform Bill

As promised last week, the leadership of the Senate Banking Committee has released draft legislation to revamp the nation's housing finance system.  Chairman Tim Johnson (D-SD) and ranking member Mike Crapo (R-ID) said their draft builds on S 1217, the Warner-Corker bill submitted last year.  Johnson and Crapo said their draft is designed to protect taxpayers from bearing the cost of a housing downturn; promote stable, liquid, and efficient mortgage markets for single-family and multifamily housing; ensure that affordable, 30-year, fixed-rate mortgages continue to be available, and that affordability remains a key consideration; provide equal access for lenders of all sizes to the secondary market; and facilitate broad availability of mortgage credit for all eligible borrowers in all areas and for single-family and multifamily housing types

It doesn't sound completely insane, and I don't see giant gift-wrapped packages to campaign supporters and key special interests in the summary. Likely DOA.

An FDIC-type entity for mortgage lenders is an interesting idea.

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