Rep. Hill Applauds CFPB Move to Shrink GSE Footprint in Mortgage Market
WASHINGTON, D.C. – Today, Ranking Member of the House Financial Services Committee Task Force on Financial Technology (FinTech), Congressman French Hill (AR-02), released a statement in support of the Consumer Financial Protection Bureau’s (CFPB) decision to end the Qualified Mortgage (QM) patch for Government Sponsored Enterprises (GSEs). This temporary provision, created in 2013 and set to expire in 2021, makes mortgages possible for buyers with high debt relative to their incomes.
“Allowing Fannie and Freddie to continue loading up on high-debt mortgages, because of a temporary loophole, has had a harmful effect on the broader housing market,” said Congressman Hill. “Phasing out the QM patch for GSEs ahead of the 2021 expiration is a responsible, proactive move that will protect borrowers and taxpayers alike. I’m pleased that the administration is signaling its willingness towards taking meaningful action on long overdue housing finance reforms. Reducing the federal government’s role in the secondary mortgage market will ultimately prevent taxpayers from being on the hook for another bailout.”