Mark R. Warner
Housing Reform
Senator Warner has lead bipartisan efforts to reform our broken housing finance system, which is the last piece of unfinished business remaining after the 2008 economic meltdown. Senator Warner and six Democrat and Republican colleagues have spent three years designing thoughtful bipartisan reforms that will wind down large Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac, and encourage a larger role for the private sector in mortgage finance.
The current mortgage finance system with only private gains and public losses is unsustainable. Senator Warner remains committed to fighting for a responsible solution to strengthen the economic recovery, protect taxpayers from future downturns and to preserve affordable mortgages for Virginia families.
Senator Warner’s Progress:
- The Senate Banking Committee reached an agreement on a bipartisan reform proposal that builds upon The Housing Finance Reform and Taxpayer Protection Act (S. 1217), introduced by Sen. Warner and Sen. Bob Corker (R-TN) in June 2013.
- The Housing Finance Reform and Taxpayer Protection Act (S.1217)
- Mandates 10 percent capital, upfront, for the system in order to protect taxpayers against future bailouts.
- Winds down GSEs Fannie Mae, Freddie Mac and the Federal Housing Finance Agency (FHFA) within five years of bill passage.
- Transfers appropriate utility duties and functions to the modernized, streamlined, accountable Federal Mortgage Insurance Corporation (FMIC), modeled in part after the Federal Deposit Insurance Corporation (FDIC).
- Replaces the failed “housing goals” of the past with a transparent and accountable market access fund that focuses on ensuring sufficient affordable housing options for lower and middle-income Virginians.
- The FMIC is NOT paid for with tax dollars, but through a small user fee for institutions who choose to use the system.
- Ensures institutions of all sizes have direct access to the secondary market so that smaller local banks and credit unions can compete when the GSEs are dissolved
