[Congressional Record Volume 147, Number 178 (Thursday, December 20, 2001)]
[Extensions of Remarks]
[Page E2366]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E2366]]
               HOME OWNERSHIP EXPANSION AND OPPORTUNITIES

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                          HON. RUBEN HINOJOSA

                                of texas

                    in the house of representatives

                      Wednesday, December 19, 2001

  Mr. HINOJOSA. Mr. Speaker, I rise today to express concerns over the 
introduction of H.R. 3206, the Home Ownership Expansion and 
Opportunities Act of 2001. The legislation would allow Ginnie Mae to 
alter its current role from guaranteeing federally backed mortgage 
securities to guaranteeing federal and conventional mortgage 
securities. In short, this legislation transforms this entity into a 
full functioning Government Sponsored Enterprise.
  While I am not necessarily opposed to the creation of an additional 
Government Sponsored Enterprise, I am opposed to the creation of an 
entity that draws from Federal capital and is not subject to government 
guidelines and goals geared toward increasing home ownership and 
improving the American economy.
  This legislation would allow Ginnie Mae to operate with equal 
flexibility and larger security than current Government Sponsored 
Enterprises in the housing mortgage market, including Fannie Mae and 
Freddie Mac. However, it would not require that Ginnie Mae meet the 
housing goals established by the U.S. Department of Housing and Urban 
Development. These goals are designed to ensure that every American can 
and one day will be able to achieve the dream of home ownership.
  Therefore, it is unclear how this legislation would help consumers or 
expand homeownership opportunities for minorities, low- to moderate-
income families, and other traditionally underserved markets. The 
legislation that expands the role and scope of Ginnie Mae does not make 
them subject to mandatory affordable housing goals, borrower income 
caps, or limit their business to first time buyers. These ideals have 
made organizations like Fannie Mae and Freddie Mac an attractive and 
worthy government sponsored enterprise and prompted them to create new 
ways to expand the number of first-time borrowers or break down 
barriers to homeownership.
  What this legislation does is make this government entity function 
like a private corporation, allowing Ginnie Mae to guarantee loans not 
just to people who need the extra help, but also to those who can and 
should be using the private market. Under these rules, I see no need to 
provide federal support for an organization that will perform a 
function in the housing market that can be executed by a private 
banking organization.
  Mr. Speaker, our nation's housing finance system is the model of the 
world. We should be concentrating our resources, time and effort in 
closing the gap of homeownership rates between minority families and 
the larger homeownership rate. We have the tools necessary to improve 
ownership numbers; let's use what we have to successfully meet our 
laudable goals.

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