McCain - Federal Housing Enterprise Regulatory Reform Act of 2005 (Democrats blocked reform)

govtrack.us ^ | 1/26/2005 | Congressional Research Service

[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.

[Rodm]

McCain is on the ball and the Democrats blocked reform sucked out millions in campaign funds and salaries out of Freddie/Fannie.

[padre35]

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.

[stocksthatgoup]

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

[maine-iac7]

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//

[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.

[stocksthatgoup]

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

[maine-iac7]

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.

[VRWCmember]

Bill has been stuck in committee for three years.

[AmericanVictory]

You, Sir, are exactly right!

[VRWCmember]

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

[snarkytart]

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

[Norman Bates]

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.

[Always Right]

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.

[ronnie raygun]

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

[VRWCmember]

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

[editor-surveyor]

Bump for Later

[CajunConservative]

bookmark

[padre35]

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.

[Rodm]

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

[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

[Azzurri]

This needs to be screamed from the rooftops, TV commercials made blasting this information from Ocean to Ocean, and McCain driving home this point in all three debates.

[MissyMa]

I am hoping he makes this known during the debates because I am so ticked off that Obama and his cohorts are trying to blame this mess on Republicans. We can't rely on the media to set things straight so it is up to us.

I want McCain to be out there with both guns blazing right now. Grrrrr.

I can't wait for this election to be over with so I can calm down. Seriously, I can't even watch any news anymore because I find myself screaming at the TV.

[silverleaf]

bookmark
Sean Hannity read John McCain’s comments on this bill that are in the Senate record. He was prophetic.

[antisocial]

BUMP

[GOPJ]

McCain is on the ball and the Democrats blocked reform sucked out millions in campaign funds and salaries out of Freddie/Fannie.

If the MSM had two brain cells to rub together, they would look into this.

[stocksthatgoup]

H.R.2895 (110th Congress) - National Affordable Housing Trust Fund Act of 2007
Status: Voted on by House

To establish the National Affordable Housing Trust Fund in the Treasury of the United States to provide for the construction, rehabilitation, and preservation of decent, safe, and affordable housing for low-income families.
Sponsor: Rep. Barney Frank [D, MA-4]Committees: Senate Banking, Housing, and Urban Affairs, House Financial Services

Bill summary

* Establishes the National Affordable Housing Trust Fund in the Treasury of the United States (Sec. 2).[1]
* Increases the amount of funding appropriated for housing counseling under the Housing and Urban Development Act of 1968 by $100.00 million for each of the fiscal years 2008 through 2012 (Sec. 2).[1]
* Appropriates $25.00 million for each of the fiscal years 2008 through 20012 for increasing funding for the improvement of technology, procedures, processes, program performance, and salaries for mortgage insurance programs under the National Housing Act (Sec. 2).[1]
* Requires the Secretary of Housing and Urban Development to establish a formula for allocating money for housing assistance among states, Indian tribes, insular areas, and local jurisdictions based on the needs and population of the area and the funding for each fiscal year (Sec. 2).[1]
* Allows organizations receiving grants from the Trust Fund to give preference to awarding affordable housing grants to first responders, public safety officers, teachers, and other eligible public employees (Sec. 2).[1]
* Requires at least 75 percent of Trust Fund grant amounts to be used for affordable housing to families whose incomes do not exceed the higher amount of either the poverty line for a family of the size involved or 30 percent of the median family income for their location (Sec. 2).[1]
* Allows a family to receive a rent contribution grant of up to 30 percent of the family's adjusted income if the rental unit is legally bound to charge a rent equal to the lesser of the existing fair market rental and 30 percent of the adjusted gross income of a family whose income is 65 percent of the median income for the area (Sec. 2).[1]
* Requires preference for housing assistance grants to be given to families who have applied to a public housing agency for assistance and been on the Section 8 or Public Housing waiting list for 12 months or longer (Sec. 2).[1]
Key votes

* Vote to pass a bill that creates a trust fund to increase the availability of affordable housing for low-income families.[1] House Record Vote (958)
October 10, 2007
On Passage: H R 2895 National Affordable Housing Trust Fund Act of 2007
On Passage
Percentage of 'Aye' votes: 61% - Passed
Required percentage of 'Aye' votes: 1/2 (50%)
Ayes 223 Dems 41 Rep
Nays 0 Dems 148 Reps
Abst. 8 dems 11 Reps

[boycott]

Ding!!!

http://www.govtrack.us/congress/record.xpd?id=109-s20060525-16&bill=s109-190

[ljswisc]

Why isn’t the McCain campaign putting this on commercials? They need to get on the ball here!

[boycott]

“I don’t see a SINGLE democrats name on either bill to attempt to reign this in long before it got to this point.”

---

The demos weren’t going to complain because they were all getting paid off.

[torchthemummy]

Why isn’t the McCain campaign putting this on commercials? They need to get on the ball here!

Don't worry. I am going to presume that McCain was pulling a rope-a-dope on Obama. He waited for Obama and Dems to scream to high heaven that it was the Republicans fault (ie. McCain) and now he will be schooled.

[VRWCmember]

Please make this NY Times article a post.

Already done by perdogg. See this thread: New Agency Proposed to Oversee Freddie Mac and Fannie Mae (September 2003)

[1035rep]

Bump!

[Corin Stormhands]

Bill has been stuck in committee for three years.

And it was stuck in committee in a GOP controlled Senate. I think we'd better learn more about the committee vote before we start waving this around.

[ding_dong_daddy_from_dumas]

[blhblhblh]

This is a big deal.
O is pushing his expertise on the economy, and Mc saw this problem back in 2006.

Why is this not getting more coverage?

[NoDRodee]

Somethings not right, McCain would have already used this in an ad. Not sure why but there must be something in the Bill that will backfire on him.

[syriacus]

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

I don't either.

[syriacus]

Somethings not right, McCain would have already used this in an ad.

Maybe he is waiting for the best time.

[syriacus]

Somethings not right, McCain would have already used this in an ad. Not sure why but there must be something in the Bill that will backfire on him.

McCain talked about this on GMA today

It's on YouTube at McCain's record of reform: the economy

[NoLibZone]

WOW!

So Bush and MCCain DID try to avert this disaster 6 years ago!

And Barney Fag and Fageets stopped them.

[Joan Kerrey]

I don’t understand why we’re not getting the word out with details and names. This reform act attempt, killed by the Dems, should be all over the news and it isn’t.

[maine-iac7]

I don’t understand why we’re not getting the word out with details and names. This reform act attempt, killed by the Dems, should be all over the news and it isn’t.

Hannity touched on it - named Dobbs and Barney and the dems as the ones that wouldn't allow the bill sponsored by McC and other pubbies in 2005 to head this off.

the dems have created this whole scenario, starting with a bill they put forth during the last years of bubba, and that bubba signed into law - letting these insane mortgages be given out to people who not only couldn't afford them - but in many cases, didn't even have jobs.

They then kept the pubbies from making corrections - a set up from the get go?

We need to remember that the Marxists have spent the last 3 decades systematically and deliberately infiltrating and taking over the democrat party...with the goal of taking over the country and instituting Marxism.

They are a whispers breath away from their goal. They are in great jeopardy of loosing to McC/Sarah...If they do, that is the end of their movement. Pubbies will hold the WH for the foreseeable future.

These are driven, evil people. Do you think they wouldn't keep this whole Fanny May/Freddie etc, simmering all this time for a last ditch weapon - and pull the plug to create this crisis in order to win?

Something to think about - evils greatest weapon is the naivete of decent people, who's minds just don't work that way.

[MacPalin08]

Does someone have a link or McCain’s actual quote about the Regulatory Reform Act of 2005? I want to put this on my blog at:

http://everythingthatsright.forumotion.net/forum.htm

Thanks!

[11th_VA]

It’s good McCain spoke about this today, now he needs to beat Hussein Obama over the head with this ...

[rockthecasbah]

bookmark

[slatkin]

Wow, September 16th seems so long ago.

What’s funny is that this article on FT.com predates even that:

http://www.ft.com/cms/s/0/8780c35e-7e91-11dd-b1af-000077b07658.html

The bill’s sponsor - Mike Oxley (not quite the torrid liberal) - seems to blame the White House and Greenspan for the failure of that bill. Democrats love regulation, remember!

[walkandchewgum]

I’m just adding factual data to this thread :

Statement of Administration Policy: H.R. 1461 - Federal Housing Finance Reform Act of 2005
http://www.presidency.ucsb.edu/ws/index.php?pid=24851

Statement of Administration Policy: H.R. 1427 - Federal Housing Finance Reform Act of 2007
http://www.presidency.ucsb.edu/ws/index.php?pid=74353