The House Financial on Services Committee will hold a hearing on Thursday to consider draft legislation for housing finance reform put forward by its chairman, Jeb Hensarling, Republican of Texas, that would end the taxpayer backstop on mortgages now provided through Fannie Mae and Freddie Mac and wind down the two companies over five years. Under the proposal, private investors rather than taxpayers would fund mortgages and take on the risks and rewards of housing investments. Todays Economist Perspectives from expert contributors. New rules would foster increased use of covered bonds, under which a pool of private assets rather than a government guarantee protects investors against losses. The legislation further seeks to ensure that smaller banks continue to play a role in housing finance.
Lew on Housing Finance, Economy, Budget, Regulation
Treasury Secretary Jacob J. Lew talks about this weekend’s meeting of Group of 20 finance ministers and central bankers in Moscow, the U.S. economy and housing finance. Lew also discusses financial regulation and the debt limit.