NAHB Backing Sarbanes GSE Bill

The National Association of Home Builders is supporting a GSE bill drafted by Sen. Paul Sarbanes, D-Md., that would create tougher affordable housing goals for Fannie Mae and Freddie Mac but does not include receivership powers."We think this is a very well-crafted, well-conceived bill and we are throwing our weight behind it," NAHB executive director Jerry Howard said. Sen. Sarbanes is expected to offer his bill at a Senate Banking Committee mark-up as a substitute to the bill drafted by committee Chairman Richard Shelby, R-Ala. The homebuilders like the way Sen. Sarbanes has structured the new regulatory agency, which would have a five-member board with three public members. And unlike the Shelby bill, it would not give the new regulator receivership powers, and the regulator could only raise Fannie's and Freddie's minimum capital standards on a temporary basis. Regarding affordable housing, the two government-sponsored enterprises would have to use 5% of net income to fund affordable housing investments. In addition, there would be sub-goals for multifamily housing along with tougher definitions of loans that qualify for affordable housing credit.