WASHINGTON (7/12/13)--The chairman of the House Financial Services Committee, Rep. Jeb Hensarling (R-Texas), and others of the committee's leadership unveiled a bill Thursday they say is intended to "create a sustainable housing finance system."
Credit Union National Association President/CEO Bill Cheney said the new bill "gives credit unions hope for their future in the housing finance market."
The Protecting American Taxpayers and Homeowners--or PATH--Act would:
Phase out government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac within five years;
Increase competition by ending the federal government's domination of the housing finance market; and
Give consumers more choices in determining which mortgage product best suits their needs.
"This is a positive approach toward establishing a sustainable housing market, and ensuring credit unions have access to a functioning, well-regulated secondary market," Cheney said. " Legislation that will transform today's system must ensure credit unions can continue to provide mortgage liquidity to their members.
"House Financial Services Committee Chairman Jeb Hensarling clearly understands the importance of credit unions in the housing finance sector, and we appreciate that the legislation takes into consideration many of our concerns. We look forward to working with Chairman Hensarling and others to achieve a secondary market that allows credit unions to continue meeting the mortgage finance needs of their members."
Hensarling also announced Thursday that the Financial Services Committee will meet on Thursday, July 18 to hold a hearing on the PATH Act.
On the Senate side last month, several senators co-sponsored bipartisan legislation that would wind down Fannie Mae and Freddie Mac and replace them with a new mortgage guarantor, the Federal Mortgage Insurance Corporation (FMIC).
It was introduced by Sens. Bob Corker (R-Tenn.), Mark Warner (D-Va.), Mike Johanns (R-Neb.), Jon Tester (D-Mont.), Dean Heller (R-Nev.), Heidi Heitkamp (D-N.D.), Jerry Moran (R-Kan.) and Kay Hagan (D-N.C.).