David Weldon: “while I believe that Government Sponsored Enterprise, GSE, reform is absolutely necessary, I cannot support H.R. 1427…”

“while I believe that Government Sponsored Enterprise, GSE, reform is absolutely necessary, I cannot support H.R. 1427, the Federal Housing Finance Reform Act, in its current form. It is important for Congress to promote home-ownership for all Americans by giving citizens access to affordable housing. However, this bill, under the Affordable Housing Fund, AHF, section, requires that GSEs set aside nearly $3 billion over the next 4 years into a special fund. H.R. 1427 essentially represents a $3 billion tax on those seeking to purchase homes. These new fees will simply be passed along to those purchasing homes. I'm not sure how a $3 billion tax increase is going to make homes more affordable. When given the opportunity to ensure that these costs would not be passed along to homeowners, supporters of the AHF voted against the amendment that would have protected homeowners. Clearly, this is designed to be a hidden tax on homebuyers. This newly created AHF would make grants to states and Indian tribes, which would then make grants to third-party housing-related entities. H.R. 1427 fails to provide adequate oversight of these third-party grantees and the funds could easily fall into the hands of politically motivated groups.”