Joe Baca: “I rise to support H.R. 1427 and thank my friend, Chairman Frank, for leading the bipartisan effort in the Financial…”

“I rise to support H.R. 1427 and thank my friend, Chairman Frank, for leading the bipartisan effort in the Financial Services Committee on this important legislation. This bill restores accountability by creating a modern, world-class regulator of the GSEs. It will also help us meet the critical shortage of affordable housing across the country through the creation of an Affordable Housing Fund. In addition, Representatives Bean, Neugebauer, Moore and Miller have offered an amendment which I support. It clarifies that the new GSE regulator does not have the power to reduce the portfolios of Fannie Mae and Freddie Mac based on artificial, so-called 'systemic risk.' This bill already gives the new regulator the FULL authority to supervise the GSE portfolios for safety, soundness and mission. I am not convinced that we should give it powers that bank regulators don't already have. I'm also not convinced that this amendment would in any way weaken the regulator's ability to make sure these companies operate safely and soundly. It is critical that we do not limit the GSE's ability to provide homeownership for low, middle income, and minority families. With their help, the GSEs have been able to increase homeownership rates across this country to a record level of 68 percent. That's impressive, but there is still much work to be done.”