ABA in a statement to the House Financial Services Committee yesterday applauded panel Chairman Jeb Hensarling (R-Texas) for offering a wide-ranging proposal to overhaul the nation’s housing finance system.
Hensarling’s PATH Act, which he intends to introduce soon, would eliminate a government guarantee for mortgages, replace Fannie Mae and Freddie Mac with an accessible platform for private mortgage securitization, reform the Federal Housing Administration and provide regulatory relief to banks.
ABA’s statement, submitted in connection with a hearing, endorsed certain provisions of the proposal and expressed concerns about others. For instance, ABA said that while it supports a reduced federal role in housing finance, a “targeted” federal guarantee would still be necessary for market stability and access to affordable mortgage credit.
ABA also supported provisions to re-target the FHA to first-time and low-to-middle-income homebuyers, and it strongly endorsed several reg relief provisions, including an extension of the Dodd-Frank mortgage rules’ compliance deadline, a delay and study of Basel III and changes to the points-and-fees definitions.
Read ABA’s statement.