Washington, DC – December 18, 2015 – (RealEstateRama) — U.S. Representative Ed Royce (R-Calif.), a senior member of the House Financial Services Committee and leading proponent of housing finance reform, released the following statement on today’s release of the Federal Housing Finance Agency (FHFA) 2016 Scorecard:
“The FHFA should be commended for further laying the ‘building blocks’ of comprehensive housing finance reform. Ramping up risk sharing with the private sector reduces the burden on taxpayers and opening up the Common Securitization Platform will bring more private sector capital into the system. The Agency alludes to improving its underwriting criteria; an excellent start would be the GSEs evaluating multiple credit scoring models.”
Rep. Royce recently introduced legislation that requires the FHFA to develop new underwriting guidelines for Fannie and Freddie, allowing consideration of alternative credit scoring models the GSEs currently don’t examine.
On November 25, the President signed legislation modeled on H.R. 2243, the Equity in Government Compensation Act of 2015, as introduced by Rep. Royce. The bill, which reversed a FHFA directive and capped the salaries of the CEOs of Fannie Mae and Freddie Mac, was the first major standalone legislation enacted that dealt with the GSEs since they were placed into conservatorship.