FEDERAL HOUSING ENTERPRISE REGULATORY REFORM ACT OF 2005
The United States Senate
May 25, 2006
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.
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.
Sponsors
# Sen. Charles Hagel [R, NE]
* Sen. Elizabeth Dole [R, NC]
* Sen. John McCain [R, AZ]
* Sen. John Sununu [R, NH]
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//
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.
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
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.
Bill has been stuck in committee for three years.
You, Sir, are exactly right!
Where did you find the House bill? I couldn’t find a reference to it.
This needs to be a TV ad in many battleground states, and this needs to part of McCain/Palin’s stump speech...like NOW!
The United States Senate
May 25, 2006
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.obama should read more before he opens his trap, Your party created his mess!
"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
Bump for Later
bookmark
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.
Please make this NY Times article a post. I think it’s critical this information gets out.
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