Senate Banking Committee Considers Framework For Housing Reform Legislation

The U.S. Senate Committee on Banking, Housing and Urban Affairs (the "Committee") heard testimony from various witnesses on Chair Mike Crapo's (R-IA) proposed framework for housing reform legislation.

Released in February, the framework for reform would:

• protect taxpayers by reducing the too-big-to-fail risk posed by the current "duopoly of mortgage guarantors";
• keep existing infrastructure in the housing finance system that works well, while increasing the role of private risk-bearing capital;
• create new layers of protection between mortgage credit risk and taxpayers;
• ensure a level playing field for originators, while also instituting uniform and responsible underwriting standards; and