The House Financial Services Committee on Wednesday announced the capital markets subcommittee will hold a hearing Feb. 9 on reforming the government-sponsored enterprises.
The hearing, titled "GSE Reform: Immediate Steps to Protect Taxpayers and End the Bailout," is expected to showcase Republican proposals to reduce the taxpayer burden of the conservatorships of Fannie Mae and Freddie Mac. Those include lowering the conforming loan limits of mortgages the GSEs can buy, and shrinking their portfolios.
The subcommittee is chaired by Rep. Scott Garrett, R-N.J., who is a staunch advocate of privatizing the GSEs and removing any government guarantee.
"With a price tag" for the conservatorships "of $150 billion and counting, Congress must take immediate measures to minimize this cost and ensure taxpayers are never put in this situation again," Garrett said in a press release. "The status quo is unacceptable, which is why we will continue to seek alternative solutions to housing finance in the United States that decrease the government's exposure and get private capital off the sidelines."
Witnesses for the hearing have not yet been announced.
"This is the beginning of our efforts to wind down the operations of Fannie Mae and Freddie Mac in order to protect taxpayers from having even more of their hard-earned money thrown at these two companies," Rep. Spencer Bachus, the chairman of the full committee, said in the press release.
