WASHINGTON House Financial Services Committee Chairman Jeb Hensarling told credit union executives during NAFCU’s Congressional Caucus he wants to accelerate reform of the secondary mortgage market with the phase down of Fannie Mae and Freddie Mac over the next five-to-seven years and the elimination of the federal guarantee on mortgages they buy.
The Texas Republican told credit union representatives he is in favor of their efforts to cut regulatory burden and the new Consumer Financial Protection Bureau, but also believes government should get out of the secondary mortgage market and invite in private capital to provide the services now provided by Fannie and Freddie.
“Just be careful when you’re asking for regulatory relief you’re not are also asking for phase-out of the government guarantee and subsidies,” the Texas lawmaker told about 400 attendees to the NAFCU conference.
Hensarling said he will continue to hack away at the Dodd-Frank Act and move for major changes, if not its outright repeal. “I want to take the yoke of Dodd-Frank off your backs,” asserted the Financial Services Chairman, who said if he had the votes he would move for repeal of Dodd-Frank.
He said the most objectionable part of Dodd-Frank was the creation of the new consumer agency, which he insisted is not accountable to Congress but is a burden on financial institutions and consumers, and is adding to the cost of doing business. “I do not know in the history of our country that there has ever been another agency that has been more powerful and less accountable than the CFPB,” Hensarling said.
