The following was sent to us by Rick Lazio, who is now apparently focused on GSE reform.
Initial thoughts on the Senate’s delayed vote of the Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) overhaul bill from Rick Lazio, former U.S. Representative (NY) and prominent Republican on housing issues, and leader of law firm Jones Walker’s affordable housing and housing finance practice. Rick’s initial thoughts on this news and its impact can be found below.
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Rick Lazio, Jones Walker LLP on delayed Fannie Mae – Freddie Mac overhaul bill:
“The announcement yesterday to indefinitely postpone the mark-up of the Johnson-Crapo GSE bill dealt a serious setback to reform efforts to overhaul the mortgage finance system this year. It appears currently that a bare majority of Committee members would support the bill but Senate Democrat leaders are looking for a rough consensus of their Committee members to consider allowing a vote on the full Senate floor. This is unlikely without concessions that will be viewed as a poison pill by Republicans. The hour is late and I believe the window is closing on the opportunity to get the reform bill to the President’s desk. While I still believe the bill will pass out of committee in the coming weeks, mark me as skeptical that Harry Reid will ever allow it to be considered on the Senate floor, let alone negotiate a compromise with Republicans in the House. Last week’s analysis from Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) addressing risks to the system by the bill’s inadequate transition plan and the fact that the reforms will lead to higher borrowing costs for low and moderate income borrowers, gave opponents yet another argument to torpedo the effort.”