WASHINGTON—Members of the Senate Banking Committee examined how to protect taxpayers while also overhauling the current housing finance system during a hearing to determine whether Fannie Mae and Freddie Mac (GSEs) should be designated as systemically important financial institutions.
Committee Chairman Mike Crapo (R-ID) said he agreed with Federal Housing Finance Agency (FHFA) Director Mark Calabria's desire to find a long-term solution for housing finance reform, noting that "taxpayers remain on the hook in the event of the next market downturn."
"We have a key opportunity right now, while the sun shines on our economy and mortgage markets are healthy, to put our housing finance system on a durable, sustainable course that can withstand any market cycle," Crapo said during his opening statement.
Ahead of the hearing, both trade groups had expressed support for a resolution, as well as issuing calls to ensure credit unions continue to have access to the secondary market.
NAFCU's Brad Thaler shared with the committee the association's housing finance reform principles, which note the importance of "a strong, independent regulator for the GSEs," and reiterated that the current conservatorship of the GSEs is unsustainable.