[Congressional Record Volume 153, Number 87 (Friday, May 25, 2007)]
[Extensions of Remarks]
[Page E1170]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               FEDERAL HOUSING FINANCE REFORM ACT OF 2007

                                 ______
                                 

                               speech of

                          HON. BETTY McCOLLUM

                              of minnesota

                    in the house of representatives

                         Tuesday, May 22, 2007

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 1427) to 
     reform the regulation of certain housing-related Government-
     sponsored enterprises, and for other purposes, with Mr. 
     Pastor (Acting Chairman) in the chair.

  Ms. McCOLLUM of Minnesota. Mr. Chairman, I rise today in support of 
H.R. 1427, the Federal Housing Finance Reform Act, and commend Chairman 
Barney Frank for his hard work to develop a comprehensive, bipartisan 
government-sponsored enterprise, GSE, reform bill.
  This legislation will restore accountability by strengthening federal 
oversight of Fannie Mae, Freddie Mac, and the 12 Federal Home Loan 
Banks. It will consolidate regulation of the housing GSEs under the 
Federal Housing Finance Agency, a new, independent agency. The Federal 
Housing Finance Agency will be authorized to adjust the enterprises' 
risk-based capitol and even limit the size of their portfolios for a 
limited time, if necessary to ensure their safety and soundness.
  H.R. 1427 also establishes an Affordable Housing Fund, which will be 
financed by a required contribution from Fannie Mae and Freddie Mac of 
only 0.012 percent of their total mortgage portfolio each year. The 
fund will annually contribute approximately $500 million to the 
construction, maintenance, and preservation of affordable housing.
  The Affordable Housing Fund is an important step toward ensuring 
access to safe, affordable housing for all Americans, regardless of 
socioeconomic status or geographic region. In its first year, the funds 
will be used entirely to build much-needed homes throughout the region 
devastated by Hurricane Katrina. In subsequent years, the grants from 
the fund will be administered by states, and Minnesota will receive an 
estimated $6.5 million each year to build affordable housing for the 
most vulnerable families.
  I applaud Chairman Frank for bringing forward a comprehensive and 
fair bill. I am particularly pleased that in contrast to last years' 
efforts, H.R. 1427 does not include language restricting faith-based 
and nonprofit organizations from receiving affordable housing funds for 
participation in nonpartisan voter registration and get-out-the-vote 
activities. Congress should put the needs of American families before 
political ideology, and this bill does just that.
  The Federal Housing Finance Reform Act has the support of the Bush 
Administration, as well as Fannie Mae, Freddie Mac, numerous other 
financial institutions, lenders, realtors, housing advocates, and many 
other housing organizations.
  Access to safe and stable housing is a basic need and one that no 
individual or family should ever be denied. I urge my colleagues to 
join me in voting for H.R. 1427.

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