What Others Say

What Others Say

What Others Say

individuals and organizations, including think tanks, public interest groups, investment research firms, and political activists, are voicing their concerns about current finance reform legislation and its potential threat to American homeownership.

Here is a snapshot of conversation regarding the proposed Johnson-Crapo bill and a look at why Fannie and Freddie must remain intact:

“Sens. Schumer, Menendez, Reed, Brown, Merkley and Warren’s vote against the Johnson-Crapo housing finance reform proposal is an encouraging development for the many U.S. women who hold the dream of affordable homeownership. We know that unscrupulous lenders targeted women of color, especially single mothers, seeking homes in good school districts for their kids, for abusive subprime loans. This bill does not adequately protect against such predatory behavior. As written, it would seek to eliminate Fannie Mae and Freddie Mac, the government entities that help provide access to responsible lending and affordable credit for all Americans. Promoting access to affordable housing is particularly important for women, for whom the most recent U.S. Census data has shown a drop in overall homeownership. Rather than putting energy behind legislation that would erect barriers to future homeownership, Congress should instead support legislation that safeguards the dream of homeownership for women and their families.  We encourage Congress to fundamentally reform Johnson-Crapo; in its current form it is unacceptable.” -- National Organization for Women (NOW)

"Promoting access to affordable housing is particularly important for women, for whom the most recent U.S. Census data has shown a drop in overall homeownership. Rather than putting energy behind legislation that would erect barriers to future homeownership, Congress should instead support legislation that safeguards the dream of homeownership for women and their families.” -- National Organization for Women

"I am well aware, and regularly express my belief, that conservatorship should never be viewed as permanent or as a desirable end state and that housing finance reform is necessary." -- Melvin L. Watt, Director, FHFA

Source: Prepared Remarks of Melvin L. Watt, Director, FHFA at the Brookings Institution Forum on the Future of Fannie Mae and Freddie Mac

“The apparent decision by Senate Banking Committee members to withhold their support for Johnson-Crapo is a very positive move for many families and communities across the nation. Fannie Mae and Freddie Mac – both of which would be wound down by the current version of the bill – have helped bring stability to the federal housing market and protect the American dream of homeownership. As we continue down the path of economic recovery, policymakers should put forth legislation that seeks to preserve and strengthen Fannie and Freddie. That is the kind of solution that will help ensure the availability of affordable homeownership for all Americans, especially those from underserved communities who most need it.” -- Harry Alford, President and CEO, National Black Chamber of Commerce

"We applaud Sens. Schumer, Menendez, Reed, Brown, Merkley and Warren’s apparent decisions to not support the Johnson-Crapo housing reform proposal. Their concerns about the legislation – and choice not to vote in favor of it – are a positive step for the many Americans – and particularly retirees, who deserve to know that the savings they’ve invested in Fannie Mae and Freddie Mac are safe. The bill as it stands threatens to un-wind Fannie and Freddie and create a brand new, fully government-run entity that would be funded by seizing Americans’ investments in Freddie and Fannie and making them worthless for shareholders. It is anticipated that Johnson-Crapo would also have a broad negative impact on the housing market, so that buying and selling houses – something that many retirees need to do as they age – would be more expensive and difficult. We hope that the lack of support for Johnson-Crapo will lead to a new solution that respects American homeowners and consumers, and fulfills the promises the government has made to them with regards to their homeownership and savings.” -- RetireSafe

"Today’s reports that Johnson-Crapo lacks the full backing of the Senate Banking Committee is a victory for homeowners, taxpayers, and retirees throughout the country. We applaud Senators Schumer, Menendez, Reed, Brown, Merkley, and Warren for their apparent-refusal to accept a well-intended, but flawed bill.  We believe these radical changes are too risky and would increase mortgage interest rates and put the dream of American homeownership even more out of reach.  We look forward to starting a new conversation about how to strengthen and preserve Fannie and Freddie, so that we can continue the economic comeback.” -- Former Senator Bob Kerrey, UAH Board Member

“I think the 30-year fixed rate mortgage is a terrific boon to homeowners.” -- Warren Buffett

Source: MarketWatch

"As Congress evaluates proposals for reforming or replacing GSEs, we ask that you press for the creation of a secondary market system that will increase access to affordable homeownership and rental housing opportunities for all Americans. Any reforms to the secondary market must include a strong, enforceable access mechanism that guarantees that creditworthy first-time homebuyers, low- and moderate-income families, and communities of color will have the opportunity to build wealth over generations by securing safe, affordable mortgage credit." -- National Community Reinvestment Coalition

Source: National Community Reinvestment Coalition

“[A housing reform proposal being considered by] Senate Banking Committee could accelerate the already significant post-recession decline in homeownership among communities of color and all working and middle-class communities.  The bill, which is co-sponsored by Sens. Tim Johnson, D.-S.D., chairman of the banking committee, and Mike Crapo, R-Idaho, the ranking member, would wind down Fannie Mae and Freddie Mac and replace them with a new agency, the Federal Mortgage Insurance Corporation (FMIC). The Johnson-Crapo bill is driven by weapons of mass deception that perpetuate the myths that affordable housing goals and the Community Reinvestment Act created the housing crisis when nothing could be further from the truth.” -- National Urban League

Source: Johnson-Crapo Housing Reform Guided by Weapons of Mass Deception About Affordable Housing Goals

“The new Senate proposal to reform the housing finance system would needlessly make mortgages more expensive and less available, announced civil rights groups today. The goal of housing finance reform is to create a safe housing finance system that provides affordable mortgages to all creditworthy borrowers, including people of color and families with modest incomes and lower wealth. We have serious concerns that the legislation proposed this week does not achieve that goal.” -- Joint statement issues by the Center for Responsible Lending, The Leadership Conference on Civil and Human Rights, National Association for the Advancement of Colored People, National Coalition for Asian Pacific American Community Development, National Council of La Raza, National Fair Housing Alliance, National Urban League

Source: National Civil Rights Groups Say, As Released, Johnson-Crapo Does Not Provide Credit Access for Communities of Color

“Mortgage finance reform is ultimately about homeownership, and the question at hand is no less than this: How can we ensure that all qualified Americans have access to the loans that they need to earn homeownership? Ensuring that this crucial market will serve all creditworthy families should be the result of housing finance reform. The recent proposal, as written, does not meet this goal.” -- USA Today op-ed by Center for Responsible Lending President Mike Calhoun

Source: Don't raise mortgage costs: Opposing view

“It seems to unnecessarily complicate the reform by eliminating the GSEs completely and hoping a new entity in their place would purport to serve a similar purpose - all in order to advance a form of housing finance reform that could instead be applied simply to the otherwise functioning and experienced GSEs.” -- Ralph Nader

Source: Senate Staffers 'Do The Hustle' With Fannie And Freddie Shareholders

“Any housing reform proposal must ensure equal and competitive access for community banks and credit unions, while avoiding further concentration of the primary and secondary mortgage markets to the largest of lenders and Wall Street firms. It is critical that any increased costs associated with establishing a new housing finance system are minimal and borrowers are not saddled with costs that are higher than necessary.” -- Credit Union National Association (CUNA), Independent Community Bankers of America (ICBA) and the National Association of Federal Credit Unions (NAFCU)

Source: NAFCU/CUNA/ICBA letter to Johnson, Crapo

“No mortgage loan securitization program has ever come close to the success of the Fannie Mae DUS® program in providing market liquidity, fantastic pricing, and exceptional credit performance for over a quarter century. The DUS program is an exemplary model that combines intense competition for loans with private capital sharing risk. Walker & Dunlop is honored to be Fannie Mae's largest partner in this highly successful program.” -- Willy Walker, Chairman and Chief Executive Officer, Walker & Dunlop

Source: Walker & Dunlop

“Some investors credit Freddie with almost single-handedly reopening the market for commercial MBS, which shut down during the credit crisis.”

Source: Financial Times