HOUSE FINANCIAL SERVICES COMMITTEE PASSES H.R. 1427

The House Financial Services Committee passes H.R. 1427 GSE REFORM BILL On March 29, 2007, the House Financial Services Committee H.R. 1427, the "Federal Housing Finance Reform Act of 2007," which overhauls the regulatory oversight of the government sponsored enterprises (GSE) of Fannie Mae, Freddie Mac and the Federal Home Loan Banks, and creates a new, independent regulator with broad powers analogous to current banking regulators. NAR has long-supported GSE reform, and has led the support for H.R. 1427 by testifying in support of the legislation and employing NAR’s grassroots advocacy which resulted in over 8,300 REALTOR letters sent to the 70 members of the House Financial Services Committee. To view NAR’s Letter to Chairman Frank in support of H.R. 1427, please go to: http://www.realtor.org/GAPublic.nsf/files/letter_gse_bfrank_032707.pdf/$FILE/letter_gse_bfrank_032707.pdf http://www.realtor.org/GAPublic.nsf/files/letter_gse_bfrank_032707.pdf/$FILE/letter_gse_bfrank_032707.pdf.

One particular provision in H.R. 1427 that NAR and a number of our state associations focused our advocacy efforts on is the authority to allow regional adjustments to the conforming loan limits in high-cost areas, which will undoubtedly help more moderate-income working families in high-cost areas qualify for safer GSE loans. Representative Gary Miller (R-CA) has been the champion of the conforming loan limit issue for as long as GSE reform has been debated Congress. Prior to the start of the debate on H.R. 1427, NAR learned that Representative Jeb Hensarling (R-TX) was going to introduce an amendment to eliminate the conforming loan limit provision in H.R. 1427 arguing that it would allow the GSEs to enter the luxury home finance market. The Mortgage Bankers Association and the Financial Services Roundtable were vocal supporters of striking the conforming loan limit provision.

NAR quickly worked with Representative Miller to generate opposition to the Hensarling amendment by working with members on the committee to educate them on the importance of allowing for regional adjustments to the loan limits, including the likelihood of helping teachers, firefighters and other hard working families who may be forced into expensive non-traditional jumbo loans in order to finance a starter home. The Hensarling amendment was overwhelming defeated by a vote of 10 (in support) and 51 (opposed to the amendment). To view Representative Miller’s letter to his colleagues urging their opposition to the Hensarling amendment, please go to: http://www.realtor.org/GAPublic.nsf/files/letter_hr1427_gmiller_032807.pdf/$FILE/letter_hr1427_gmiller_032807.pdf http://www.realtor.org/GAPublic.nsf/files/letter_hr1427_gmiller_032807.pdf/$FILE/letter_hr1427_gmiller_032807.pdf.

After 2 days of debate and consideration, H.R. 1427 passed on a bipartisan majority of 45 to 19. The bill, which largely follows the contours of NAR supported GSE Reform legislation passed in the 109th Congress, now has the support of the Department of the Treasury and is expected to go to the House floor after the spring recess.

For more information, please CONTACT: Lynn King, lking@realtors.org,  mailto:lking@realtors.org , 202-383-1156, or Jeff Lischer, jlischer@realtors.org,  mailto:jlischer@realtors.org , 202-383-1117.