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McHenry: This is a Critical Step Toward Fixing our Broken Housing Finance System

Washington, May 21 -

The top Republican on the House Financial Services Committee, Patrick McHenry (NC-10), issued the following statement in response to the Federal Housing Finance Agency’s (FHFA) proposed rule setting stronger capital requirements for Fannie Mae and Freddie Mac:

“This is a critical step toward fixing our broken housing finance system. This proposed rule is a part of Director Calabria and the Trump Administration’s work to find a long-term solution to this decade-old problem. Stronger capital requirements for Fannie Mae and Freddie Mac will set a solid foundation to responsibly move the Enterprises out of government conservatorship. This will help foster a competitive marketplace that makes the goal of homeownership achievable for more Americans—while protecting taxpayers from the current unsustainable system.

“Now more than ever, it is critical the Enterprises are well-capitalized and secure. As millions of current borrowers and future homeowners face financial uncertainty due to economic conditions caused by COVID-19, this proposed rule is the right move to ensure economic stress does not lead to a future crisis. As the FHFA moves forward with these overdue reforms, Congress must also act to find a long term, permanent solution.”

Ranking Member McHenry has repeatedly voiced his support for exploring all paths toward responsibly ending the government sponsorship of Fannie Mae and Freddie Mac and has identified it as a priority since the beginning of his time as the Republican leader of the committee.