This story appeared in Bank Digest
Entitled "A pragmatic plan to free the mortgage market from Washington," Rep. John Delaney's (D-Md) op-ed in the Financial Times describes how the Delaney-Carney-Himes proposal represents a middle ground between the Johnson-Crapo package in the Senate and the PATH Act, introduced by House Committee on Financial Services Chairman Hensarling (R-Texas) for winding down the government sponsored enterprises (GSEs)—Fannie Mae and Freddie Mac.
The Delaney-Carney-Himes housing reform proposal would:
- allow the government to expand the capacity of housing finance while allowing the private sector to price all of the risk;
- create incentives for private capital's market share in housing to grow over time;
- create a path for Fannie Mae and Freddie Mac to be sold as independent companies without any government support or monopoly status; and
- create additional funds for low income housing.