Obama Administration Announces Conference on Housing Finance Reform

 This story appeared in Bank Digest.

The Obama administration announced expanded opportunities for public engagement on the future of our nation’s housing finance system, including Fannie Mae and Freddie Mac. These events, which will include a major conference on Aug. 17, 2010, in Washington, D.C., will help provide critical public input as the administration continues its work developing a comprehensive housing finance reform proposal for delivery to Congress by January 2011. The conference is expected to bring together leading academic experts, consumer and community organizations, industry groups, market participants and other stakeholders for an open discussion about housing finance reform. 

“The Obama Administration is committed to delivering a comprehensive reform proposal that protects taxpayers, institutes tough oversight, restores the long-term health of our housing market, and strengthens our nation’s economic recovery,” said Treasury Secretary Timothy Geithner. In a post on the White House Blog, Treasury Under Secretary for Domestic Finance Jeffrey A. Goldstein outlined the Obama Administration's efforts to date in the area of housing finance reform, as well as the current state of our nation's housing finance system.

Calling the lack of reform of government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac “irresponsible, and a total abdication of congressional responsibility,” House Financial Services Committee Republicans chided Democrats on the planned August conference to discuss the GSEs. In a statement released on their website, Committee Republicans noted that they have “offered plans to shut off the $145 billion (and growing) taxpayer bailout [of the GSEs] but the Democrats have ignored our proposals for more than a year.” Ranking Member Spencer Bachus, R-Ala., added, “The Democrat strategy of ‘planning to plan’ does nothing to end these bailouts, and the time for asking questions and scheduling academic forums is over.”