The Senate Banking Committee postponed a mark-up of housing finance reform legislation on Tuesday to allow members of the committee adequate time to consider the proposal.
“As all of the Members already know, there continue to be important discussions to build a larger coalition supporting the bill,” Committee Chairman Tim Johnson (D-S.D.) said. “While we have the votes to report the bill out today, Members of the Committee have asked for a brief delay to try to work out additional issues prior to a final vote. To allow time for those discussions to be completed, we will shortly recess the executive session subject to the call of the Chair.”
Johnson said the committee will reconvene to discuss the bill in coming days.
The 425-page bill—the Housing Finance Reform and Taxpayer Protection Act—would implement a number of major changes to the housing finance market.
Under the legislation Fannie Mae and Freddie Mac, held by the Federal Housing Finance Administration (FHFA), would be wound down and replaced with the Federal Mortgage Insurance Corp., in which financial institutions would issue mortgage-backed securities and be required to take losses before any taxpayer assistance is provided.