Housing finance reform passes committee 13-9

Despite the announcement of six Senate Democrats late last week that they would not support a housing finance reform overhaul drafted by Senate Banking Committee Chair Tim Johnson (D-S.D.) and ranking member Mike Crapo (R-Idaho), the committee approved that bill (S. 1217) by a 13-9 vote Thursday.

Credit Union National Association President/CEO Bill Cheney, following the vote, said, “It’s critical that government-sponsored enterprise reform ensures equal and competitive access for credit unions and other small lenders to the housing finance market–and avoids further concentration of the primary and secondary mortgage markets to Wall Street and the largest of lenders.

“This legislation takes significant steps toward accomplishing both. Our thanks to Chairman Tim Johnson and ranking member Mike Crapo for their leadership.”

The bill is intended to redesign the nation’s housing finance reform system to address problems that caused and resulted from the country’s recent mortgage market and economic meltdown.

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