Government policies promoted a systematic loosening of underwriting standards in an effort to promote affordable housing, which then contributed mightily to the housing bubble, mortgage meltdown and resulting financial crisis.  

A common regulator for housing GSEs would regulate three of the largest debt issuers in the world.

The House Financial Services Committee and Senate Banking Committee bills are generally consistent, although a few points of controversy must be addressed.

Combined oversight of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks constitutes a logical and effective regulatory domain.

The bill fails to improve on current law or address the critical issues of financial risk that Congress needs to consider for GSEs to play a constructive role in the housing finance system.

If the goal of regulatory reform is to minimize the odds of future financial meltdowns, GSE reform must be included in the financial reform package.

In less than twenty-five years, government “affordable housing” and other housing policies have turned a healthy market into a financial ruin. Until Fannie and Freddie’s market dominance and the government’s role in the housing finance system are substantially reduced or eliminated, the United States will continue to have an inferior and unstable housing market.

Rather than postponing reform for Fannie Mae and Freddie Mac, the Democratic Party should follow the lead of Andrew Jackson, who confronted the government sponsored enterprise issue of his day by disbanding the Second Bank of the United States.