Summary

The Housing Partnership Network strongly supports your efforts to craft a bipartisan bill that
can pass the Senate. Congress should address housing finance reform with a certain sense of
urgency. The status quo is neither sustainable nor desirable. Until the new rules are written the
affordable housing market will continue to rely heavily on Fannie Mae’s and Freddie Mac’s role in the market. Yet, uncertainty around the future direction of the market and overly
conservative regulatory oversight has only served to constrain the availability of credit for the
people and communities our members serve. Arbitrary increases in guarantee fees justified by
an effort to bring private capital back into the market increase the cost of credit, but have done
little to improve consumer choice or access to credit – especially for lower-income people.
While under conservatorship, the Government Sponsored Enterprises (GSEs) do not have the
flexibility to innovate and respond to specific market challenges as they arise. Additionally,
there is an ongoing risk that as Fannie Mae and Freddie Mac continue to suffer an erosion of
talent they will become increasingly less effective in supporting primary market originations
and in performing their asset management responsibilities. If done poorly and inefficiently,
consumers and communities suffer.  

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