Continuing Resolution Passed
On September 18, the Senate passed the continuing resolution, H.J.RES 124, by a recorded vote of 78 to 22. The House of Representatives passed the CR by a recorded vote of 319 to 108 on September 17. This CR provides funding for the federal government until December 11, 2014 in lieu of the regular appropriations bills that are necessary to keep the government open past the end of the fiscal year (September 30th).
As mentioned previously, this is a “clean” bill, meaning there are no controversial provisions that would have stopped or threatened its passage. Minor changes were made to some federal programs, but there are no changes to existing affordable housing programs in this bill. The House did include an amendment to provide authority to train and equip Syrian rebels to fight ISIL; the Senate agreed to the amendment and it is included in the final bill.
According to various political analyses, members of Congress were inclined to avoid another government shutdown as happened in October 2013, considering mid-term elections are fast approaching in November. Still, Congress will have to come to an agreement by the CR deadline on the appropriations figures for the remainder of December, 2014 and the rest of FY 2015.
To view a press release on the passage of H.J.Res 124 by House Appropriations Committee Chairman Hal Rogers, please click here
Presidential Nominations for Positions at HUD and the FHFA
On Wednesday, September 17, the Senate confirmed the nomination of Laura S. Wertheimer to be Inspector General of the Federal Housing Finance Agency through a voice vote. Since 2003, Wertheimer has been a partner in the Securities Department of law firm Wilmer Cutler Pickering Hale and Dorr, LLP. She is also a member of the firm’s Securities Litigation and Enforcement Practice Group.
As Inspector General for the FHFA, Wertheimer will responsible to promote the efficiency and effectiveness in the Agency, and to prevent and detect fraud, waste, and abuse in its programs. This includes oversight of the Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac as they remain in conservatorship.
The Senate also confirmed Bradford Raymond Huther to be the Chief Financial Officer for HUD. Huther previously served as a Senior Advisor to the Commissioner in the U.S. Department of Commerce since 2010. As CFO of HUD, he will be responsible for accounting, budgeting, and financial management for HUD’s budget appropriations through Congress. In addition, Huther will have oversight of the CFO financial systems, which process millions of transactions annually to support HUD projects.
Bill Seeks to Prevent Limitation on Federal Multifamily Loans
On Tuesday, September 16, Representative Carolyn Maloney (D-NY) introduced H.R. 5495, the Preserving Multifamily Housing Act of 2014. This bill would prohibit the Federal Housing Finance Agency (FHFA) or other regulators from setting arbitrary limitations on the volume or scope of multifamily housing mortgages backed by Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac. Exceptions are made when the Director of the FHFA determines that there is substantial evidence that not placing limits on the multifamily businesses would compromise the financial safety and soundness of the GSEs. However, the Director would have to notify Congress and the public in advance.
Fannie and Freddie are the guarantors of $63 billion in loans backing multifamily apartment buildings per year nationwide. This multifamily business has performed well, including during the financial crisis of 2008. According to Representative Maloney’s website, in 2013, FHFA implemented an arbitrary 10 percent cut in the GSEs’ multifamily businesses, and was exploring additional restrictions for 2014. Maloney opposed additional restrictions in an October 2013 letter to Acting Director Ed DeMarco.
H.R. 5495 currently has no co-sponsors. Its chances of passage are slim; many of the front running bills to reform the U.S. housing finance industry either eliminate or alter the GSEs and their affordable housing goals.
To view a press release and the text of H.R. 5495, please click here