Roland Gutierrez: “I am very proud of the committee print of H.R. 1461, legislation designed to improve the regulatory structure of the…”

“I am very proud of the committee print of H.R. 1461, legislation designed to improve the regulatory structure of the Government Sponsored Enterprises, GSEs. I am pleased that two amendments I offered at markup are part of the bill. One of my amendments preserves the minority component of the single family housing goals relating to underserved areas, with a major improvement in its implementation. My other amendment provides protection from liability for a GSE that makes reports to its regulator concerning transactions involving fraudulent loans or financial instruments. This provision was modeled after the protection from potential liability for such reports that banking institutions currently have under the Bank Secrecy Act. H.R. 1461 also contains a much-needed expansion of Fannie and Freddie's affordable housing goals. The legislation directs each company to establish and manage an affordable housing fund to promote affordable housing and assist victims of Hurricane Katrina. The GSEs would devote 3.5 percent of after tax profits to the fund beginning in 2006, which increases to 5 percent annually beginning in 2007. In 1989, in the FIRREA legislation, we created a similar Affordable Housing Program in the Federal Home Loan Bank System. The AHP requires the FHLBs to devote 10 percent of each year's net profits as grants for affordable housing projects sponsored by their member financial institutions.…”