Realtor, September 11, 2019: Housing Finance Reform Battle Lines Drawn in Senate Hearing

Senators discussing housing reform at a Tuesday hearing had plenty of opinions but gave little sign that they’ll take action on one of the most pressing issues facing American households.

The Senate Banking Committee heard testimony from the key architects of the Trump administration’s plan to reform the country’s housing finance system and end the conservatorship of Fannie Mae and Freddie Mac, including Treasury Secretary Steven Mnuchin, Housing and Urban Development Secretary Ben Carson and Federal Housing Finance Agency Director Mark Calabria.

Senators mostly agreed that the current state of affairs when it comes to the Treasury Department’s backing of Fannie Mae and Freddie Mac was risky and untenable. Just how to unwind to two mortgage giants’ conservatorship clearly remains up for debate.

Sen. Sherrod Brown, the committee’s ranking member, criticized the plan released last week, saying it “will make mortgages more expensive and harder to get.”

“We shouldn’t need to tell the president we have an affordable housing crisis in this country,” Brown, a Democrat from Ohio, said.

In his own opening remarks, Sen. Mike Crapo, a Republican from Idaho and the committee’s chairman, seemingly anticipated the unlikeliness of a comprehensive housing reform plan moving out of the committee any time soon. He suggested the administration begin to take what steps it can to address the persistent issues with the housing finance system, noting that it could help make Congress’ job easier if it eventually did produce a plan.