When it comes to restructuring the housing finance system, the new chairman of the Senate Banking Committee wants to ensure that safe, 30-year fixed-rate mortgages will available to homebuyers with all lenders having equal access to the secondary market.
Chairman Tim Johnson, D-S.D., is circulating an outline of his agenda to committee members that shows he is prepared to hold extensive hearings on restructuring Fannie Mae, Freddie Mac and the housing finance system in an "effort to find areas of agreement for possible legislation."
Securitization issues also will be part of the discussions, particularly the risk retention rule, which is mandated under Dodd-Frank.
The SBC agenda notes that hearings last year "identified widespread mortgage servicing problems that may be compounding the foreclosure crisis. The committee will also continue its oversight work to improve foreclosure mitigation efforts conducted through HAMP and private sector institutions."
Sen. Johnson also plans to conduct oversight hearings to ensure "effective and timely implementation" of Dodd-Frank, and the successful implementation of the Consumer Financial Protection Bureau.
The new chairman expects the White House to eventually nominate someone to head CFPB (allowing the pick to be confirmed by the Senate prior to its July 21 startup date) but doesn't think it will happen anytime soon. "No nomination currently anticipated" for the Federal Housing Finance Agency, the agenda says.
Edward DeMarco remains as the acting FHFA director. The White House's pick to run the agency recently withdrew his name from consideration.
