Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

McCain - Federal Housing Enterprise Regulatory Reform Act of 2005 (Democrats blocked reform)
govtrack.us ^ | 1/26/2005 | Congressional Research Service

Posted on 09/16/2008 2:01:53 PM PDT by Rodm

Federal Housing Enterprise Regulatory Reform Act of 2005

Bill Summary

1/26/2005--Introduced. Federal Housing Enterprise Regulatory Reform Act of 2005 - Amends the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 to establish: (1) in lieu of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development (HUD), an independent Federal Housing Enterprise Regulatory Agency which shall have authority over the Federal Home Loan Bank Finance Corporation, the Federal Home Loan Banks, the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac); and (2) the Federal Housing Enterprise Board. Sets forth operating, administrative, and regulatory provisions of the Agency, including provisions respecting: (1) assessment authority; (2) authority to limit nonmission-related assets; (3) minimum and critical capital levels; (4) risk-based capital test; (5) capital classifications and undercapitalized enterprises; (6) enforcement actions and penalties; (7) golden parachutes; and (8) reporting. Amends the Federal Home Loan Bank Act to establish the Federal Home Loan Bank Finance Corporation. Transfers the functions of the Office of Finance of the Federal Home Loan Banks to such Corporation. Excludes the Federal Home Loan Banks from certain securities reporting requirements. Abolishes the Federal Housing Finance Board.


TOPICS: Business/Economy; Front Page News; News/Current Events; Politics/Elections
KEYWORDS: fannie; fanniemae; freddie; freddiemac; govwatch; housingbubble; mccain; reform
Navigation: use the links below to view more comments.
first 1-2021-4041-47 next last
McCain is on the ball and the Democrats blocked reform sucked out millions in campaign funds and salaries out of Freddie/Fannie.
1 posted on 09/16/2008 2:01:53 PM PDT by Rodm
[ Post Reply | Private Reply | View Replies]

To: Rodm

And McCain should beat the heck out of Democrats and Obama for not allowing any reform or oversight to be carried out on Fannie Mae.


2 posted on 09/16/2008 2:08:02 PM PDT by padre35 (Sarah Palin is the one we've been waiting for..Rom 10.10..)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Rodm

Sponsors
# Sen. Charles Hagel [R, NE]
* Sen. Elizabeth Dole [R, NC]
* Sen. John McCain [R, AZ]
* Sen. John Sununu [R, NH]


3 posted on 09/16/2008 2:10:19 PM PDT by stocksthatgoup (Pontius Pilate Voted "Present")
[ Post Reply | Private Reply | To 1 | View Replies]

To: Rodm
and it was a Clinton program that gave mortgages to people without jobs, credit or other income - so they could "enjoy being home owners!"

then when Bush tried to reign it in - Barney Frank and gang nixed it.

Our side needs to get an ad going with these steps in it and end with, “Give us a congress and a senate that will work with us. Help us give Reed and Pelosi a pink slip. Vote “R” down the ticket//

4 posted on 09/16/2008 2:10:32 PM PDT by maine-iac7 (No trees were killed in sending this message but a lot of electrons were terribly agitated)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Rodm

Sen. John McCain [R-AZ]: Mr. President, this week Fannie Mae’s regulator reported that the company’s quarterly reports of profit growth over the past few years were “illusions deliberately and systematically created” by the company’s senior management, which resulted in a $10.6 billion accounting scandal.

The Office of Federal Housing Enterprise Oversight’s report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae’s former chief executive officer, OFHEO’s report shows that over half of Mr. Raines’ compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac.

The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator’s examination of the company’s accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million fine in a settlement with the Federal Election Commission and restated lobbying disclosure reports from 2004 to 2005. These are entities that have demonstrated over and over again that they are deeply in need of reform.

For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac—known as Government-sponsored entities or GSEs—and the sheer magnitude of these companies and the role they play in the housing market. OFHEO’s report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO’s report solidifies my view that the GSEs need to be reformed without delay.

I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.

I urge my colleagues to support swift action on this GSE reform legislation.


5 posted on 09/16/2008 2:10:45 PM PDT by Rodm (Seest thou a man diligent in his business? He shall stand before kings)
[ Post Reply | Private Reply | To 1 | View Replies]

To: maine-iac7

House Complimentary Bill

Sponsor

* Rep. Richard Baker [R, LA-6]
* and 19 Co-Sponsors
o Rep. Robert Aderholt [R, AL-4]
o Rep. James Barrett [R, SC-3]
o Rep. Roy Blunt [R, MO-7]
o Rep. Geoff Davis [R, KY-4]
o Rep. Tom Feeney [R, FL-24]
o Michael Fitzpatrick
o Rep. E. Scott Garrett [R, NJ-5]
o Rep. Paul Gillmor [R, OH-5]
o Rep. Jeb Hensarling [R, TX-5]
o Rep. Walter Jones [R, NC-3]
o Rep. Thaddeus McCotter [R, MI-11]
o Rep. Patrick Mchenry [R, NC-10]
o Michael Oxley
o Rep. Ileana Ros-Lehtinen [R, FL-18]
o Rep. Paul Ryan [R, WI-1]
o Jim Ryun
o Rep. Christopher Shays [R, CT-4]
o Robert Simmons
o Rep. Frank Wolf [R, VA-10]
close


6 posted on 09/16/2008 2:11:36 PM PDT by stocksthatgoup (Pontius Pilate Voted "Present")
[ Post Reply | Private Reply | To 4 | View Replies]

To: stocksthatgoup
I don't see a SINGLE democrats name on either bill to attempt to reign this in long before it got to this point.

McCain was one of the 4 sponsors in the senate.

Surely we can get this out there - this is what you get when democrats/Marxists get the reigns...

This all started with Clinton - making mortgages available to ANYone - even without jobs or income.

McCain and the Bush Admin. tried to reign it in. The demRats kept it afloat.

Time to expose them and shut obambis lying mouth up - besides, he should be so busy getting his defense together to fight a charge of violation of the Logan Act, he shouldn't have time for anything else.

7 posted on 09/16/2008 2:17:58 PM PDT by maine-iac7 (No trees were killed in sending this message but a lot of electrons were terribly agitated)
[ Post Reply | Private Reply | To 6 | View Replies]

To: Rodm

Bill has been stuck in committee for three years.


8 posted on 09/16/2008 2:22:24 PM PDT by VRWCmember
[ Post Reply | Private Reply | To 1 | View Replies]

To: maine-iac7

You, Sir, are exactly right!


9 posted on 09/16/2008 2:26:14 PM PDT by AmericanVictory (Should we be more like them, or they like us?)
[ Post Reply | Private Reply | To 4 | View Replies]

To: stocksthatgoup

Where did you find the House bill? I couldn’t find a reference to it.


10 posted on 09/16/2008 2:27:55 PM PDT by VRWCmember
[ Post Reply | Private Reply | To 6 | View Replies]

To: padre35

This needs to be a TV ad in many battleground states, and this needs to part of McCain/Palin’s stump speech...like NOW!


11 posted on 09/16/2008 2:28:35 PM PDT by snarkytart
[ Post Reply | Private Reply | To 2 | View Replies]

To: TitansAFC; meandog; onyx; MARTIAL MONK; GulfBreeze; Kuksool; freespirited; Salvation; furquhart; ...
The McCain List.

Here is the housing reform McCain tried to enact in 2005 that was blocked by Democrats. This is definitely in McCain's favor.

12 posted on 09/16/2008 2:35:05 PM PDT by Norman Bates (Freepmail me to be part of the McCain List!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Rodm

FEDERAL HOUSING ENTERPRISE REGULATORY REFORM ACT OF 2005

The United States Senate

May 25, 2006

 

Sen. John McCain [R-AZ]: Mr. President, this week Fannie Mae's regulator reported that the company's quarterly reports of profit growth over the past few years were "illusions deliberately and systematically created" by the company's senior management, which resulted in a $10.6 billion accounting scandal.

The Office of Federal Housing Enterprise Oversight's report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae's former chief executive officer, OFHEO's report shows that over half of Mr. Raines' compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac.

The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator's examination of the company's accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million fine in a settlement with the Federal Election Commission and restated lobbying disclosure reports from 2004 to 2005. These are entities that have demonstrated over and over again that they are deeply in need of reform.

For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac--known as Government-sponsored entities or GSEs--and the sheer magnitude of these companies and the role they play in the housing market. OFHEO's report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO's report solidifies my view that the GSEs need to be reformed without delay.

I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.

I urge my colleagues to support swift action on this GSE reform legislation.


13 posted on 09/16/2008 2:37:59 PM PDT by Always Right (Obama: more arrogant than Bill Clinton, more naive than Jimmy Carter, and more liberal than LBJ.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Rodm

obama should read more before he opens his trap, Your party created his mess!


14 posted on 09/16/2008 2:39:18 PM PDT by ronnie raygun (IF YOU ARE NOT CONSERVATIVE BY 35 YOU HAVE NO BRAIN. W CHURCHILL)
[ Post Reply | Private Reply | To 1 | View Replies]

To: maine-iac7
Among the groups denouncing the proposal were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.

"These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis," said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."
Source: NY Times: September 11, 2003 New Agency Proposed to Oversee Freddie Mac and Fannie Mae

15 posted on 09/16/2008 2:41:00 PM PDT by VRWCmember
[ Post Reply | Private Reply | To 4 | View Replies]

To: Rodm

Bump for Later


16 posted on 09/16/2008 2:42:06 PM PDT by editor-surveyor ( If Obama had Palin's resume and experience Obama would be qualified to be VP too.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Always Right

bookmark


17 posted on 09/16/2008 2:45:33 PM PDT by CajunConservative (They can either go quietly or they can go loudly but either way they will go. Bobby Jindal)
[ Post Reply | Private Reply | To 13 | View Replies]

To: snarkytart

I agree, and it grows worse, the current GSE “reform” proposal REQUIRES Fannie Mae to set up a low income housing trust fund, meaning the low income home buyers and the highest risks now will be grafted into the already destroyed Fannie Mae structure.

And that is July 2008 and Obama and Jack Reed are the two cheerleaders for that to happen.

The 2005 proposal basically would require Fannie to sell the risky mortgages and cap the amount of them they could take on, if that advice had been followed, we would not be on the hook for 500 BILLION dollars already.


18 posted on 09/16/2008 2:47:01 PM PDT by padre35 (Sarah Palin is the one we've been waiting for..Rom 10.10..)
[ Post Reply | Private Reply | To 11 | View Replies]

To: VRWCmember

Please make this NY Times article a post. I think it’s critical this information gets out.


19 posted on 09/16/2008 2:47:33 PM PDT by Rodm (Seest thou a man diligent in his business? He shall stand before kings)
[ Post Reply | Private Reply | To 15 | View Replies]

To: stocksthatgoup
Housing Financial Services Committee Approves Affordable Housing Amendment

On May 25, the House Financial Services Committee approved a bill, the Federal Housing Finance Reform Act of 2005, or H.R. 1461, that provides stricter federal oversight for Fannie Mae and Freddie Mac, the two large, government-chartered mortgage finance agencies known as government-sponsored enterprises, or GSEs. The GSE bill includes language setting aside five percent of Fannie and Freddie’s after-tax profits for the production of affordable housing. Permitted uses of dollars from this fund include rehab of low-income housing that could address conditions affecting occupant health. This affordable housing fund provision was supported by a variety of Representatives on the Committee from both sides of the aisle.

Currently, members of the House leadership do not support the affordable housing amendment and are on record as being committed to stripping the language from H.R. 1461. Senator Richard Shelby (R-AL), Chair of the Senate Banking, Housing and Urban Affairs Committee, has also expressed his opposition to the affordable housing provision and will likely attempt to keep such language out of the Senate version of the GSE bill.
For more information on the affordable housing language included in H.R. 1461, visit www.nlihc.org

20 posted on 09/16/2008 2:53:25 PM PDT by stocksthatgoup (Pontius Pilate Voted "Present")
[ Post Reply | Private Reply | To 6 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-47 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson