Senate Banking Committee Passes GSE Reform Bill
On Thursday, May 15, the Senate Banking, Housing, and Urban Affairs Committee passed S.1217, the Housing Finance Reform and Taxpayer Protection Act of 2014. This Committee scheduled a markup for the bill previously in late April, but decided to delay the final markup until more support could be drummed up for the bill. The final passing vote was 13 to 9.
S. 1217 includes provisions that would:
- Eliminate the GSEs Fannie Mae and Freddie Mac and replace them with the Federal Mortgage Insurance Company (FMIC) to provide catastrophic reinsurance for mortgage-backed securities;
- Eliminate the GSE’s affordable housing goals after their closure;
- Support the Housing Trust Fund, the Capital Magnet Fund, and the newly-created Market Access Fund; and
- Transfer the staff, infrastructure, technology and other resources of the Federal Housing Finance Agency (FHFA) to the newly created FMIC.
During the markup on Thursday, some Senators expressed concern over the bill’s attempt to keep some government activity in the housing finance industry. Richard Shelby (R-AL) was concerned that the government was replacing one large entity with another (i.e. replacing the GSEs with the intended Federal Mortgage Insurance Company). Other Senators were concerned that this legislation may decrease access for minority or middle class homebuyers. GSE reform continues to be a major issue, but progress is slow. Other bills competing with S. 1217, such as the House PATH Act, have made little advancement since it passed the House Financial Services Committee.
Numerous amendments were introduced during the markup, but the text of each has yet to be released. NAHMA will continue to follow the progress of S. 1217 as it moves before the full Senate.
To watch a webcast of the markup hearing, please
click here.
Tax Extenders Bill Fails to Pass Senate
This week, members of the Senate were set to vote on S. 2260, the Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act. This is a “tax extenders” bill, a piece of legislation that continues current and temporary tax breaks in lieu of comprehensive reform legislation. Under the EXPIRE Act, more than 50 temporary tax breaks that expired at the end of 2013 would be extended through 2015, including the LIHTC minimum 9% credit and a new minimum 4% credit for preservation.
Though the bill had strong bipartisan support in the Senate Finance Committee, the EXPIRE Act failed to pass the full Senate on Thursday, May 15. The procedural votes to move the bill towards cloture came to 53 to 40, which did not meet the threshold to bypass a filibuster. Republicans typically support tax-cutting legislation such as the EXPRIE Act, but a majority voted in opposition because of Senate Majority Leader Harry Reid’s (D-NV) decision to block amendment votes on the bill. Typically, Senators may introduce amendments and debate/vote on them before voting for cloture, after which final votes take place.
In a statement released on Thursday, the Senate Finance Committee Chairman and sponsor of the EXIPRE Act, Ron Wyden (D-OR), said: “Despite today’s actions, the EXPIRE Act continues to be critical and timely legislation that we have to get done. And as I have said before, I continue to be open to narrowly related amendments similar to those added in Committee that strengthen the bill.” In media interviews, Wyden has stated that he will try to bring the EXPIRE Act back to the Senate floor next week.
To read a summary of the final version of S. 2260, the EXPIRE Act, please
click here.
