Rep. Maloney applauds Johnson-Crapo housing finance reform proposal

Mar 17, 2014
Press Release

NEW YORK – Congresswoman Carolyn B. Maloney (NY-12), Ranking Member of the House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises (GSE), today released the following statement on the Johnson-Crapo housing finance reform proposal:

“I commend Senate Banking Committee Chairman Tim Johnson and Ranking Member Mike Crapo for their bipartisan effort to reform our nation's housing finance system. With more than 20 percent of our economy at stake, their thoughtful housing finance reform proposal builds on the work of Senators Bob Corker and Mark Warner, and moves us one step closer to restoring market stability, housing affordability, and investor certainty to the housing market.

“While I look forward to reviewing the Johnson-Crapo bill in more detail, this bill has much to applaud. It would retain an explicit government guarantee that is needed to maintain the 30-year, fixed-rate mortgage and a well-functioning housing finance system, while also taking steps to protect taxpayers from another housing bailout. The bill also addresses multifamily housing, which I call New York City’s single family housing, and makes affordable housing a top priority, by providing funds for the Housing Trust Fund, the Capital Magnet Fund, and the newly-created Market Access Fund. Each of these programs will target the housing needs of lower and middle income Americans.

“I’m also pleased that the Johnson-Crapo bill maintains the current conforming loan limit of $625,500 in high cost areas and makes it clear that the regulator does not have the authority to reduce this limit, keeping mortgage credit available and more predictable in high cost areas like New York City.

“I applaud Chairman Johnson and Ranking Member Crapo for their efforts and look forward to more closely reviewing their draft bill.”