Thursday, December 15, 2011

Garrett’s mortgage finance bill passes subcommittee after heated mark-up

by Sarah Jawaid, National Housing Conference

The Capital Markets subcommittee of House Financial Services marked up the Private Mortgage Market Investment Act, introduced by Rep. Scott Garrett (R-NJ), yesterday. The House panel voted on the proposal late last night and passed it by a 18-15 vote. Members of the committee offered numerous amendments, including changes to the QRM portion of the risk retention rule, deferring action until GSE reform is taken up in earnest, eliminating restrictions on principal reduction, and more. The mark-up comes after Garrett led a second subcommittee hearing on the draft bill Dec. 7 to hear perspectives from industry experts. Read more NHC’s analysis of this hearing.

Highlights from the hearing included: Rep. John Campbell (R-CA) describing the bill as “overly prescriptive” in comparison to the Campbell-Peters proposal; Rep. Waters’(D-CA) strongly opposing the bill’s prohibitions of principal reductions; Rep. Maloney (D-NY) saying that repealing the risk retention rule is because “skin in the game” is necessary; and Rep. Manzullo (R-IL) observing that aspects of proposed law would incentivize foreclosures. Watch the archived video of the hearing here.

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