Date: 2007-05-17
Speaker: GARY G. MILLER (republican)
Chamber: H
State: California

Mr. Chairman. I want to thank the chairman and Mr. BACHUS for yielding me this time. I know this has been an issue that they have been working on for years. the same as I have.. For the last 3 years. this has been a focus for us dealing with this issue that has been impacting and in many ways very beneficial to the housing market. I commend Chairman FRANK and Secretary Paulson for their hard work to strike an agreement so we can move this important reform legislation forward. We must provide for a strong regulator for the GSEs so that investors and the markets are assured that these companies are sound and that their investments in Americas housing markets are safe. This bill recognizes that strong regulation provides a means to achieve our ultimate goal of expanding supply of affordable mortgage -credit throughout this Nation. The goal in the process we have taken today is to preserve the mission while strengthening the authority of the regulator. We have been working on this issue for a number of years.. Through this lengthy legislative process. I have asked my colleagues to be mindful that as we addressed deficiencies in GSE supervision. we must not lose sight of Congresss original intent that chartered the GSEs. The mission of Fannie Mae and Freddie Mac is to provide stability and on ongoing assistance to the secondary market for residential mortgages. and to promote access to mortgage credit and homeownership throughout the United States. The bill before us today builds upon the bill that passed the House under the leadership of former Chairman Oxley in 2005. That bill passed by an overwhelming vote of 33190. As I was looking back at the RECORD at that point in time. it surprised me that based on the comments made by the administration at that time. they are saying that the bill .today creates a stronger. regulator than the one we passed in 2005. And I was surprised to read that the bill before us today. the administration. unlike the bill passed in 2005. which Treasury opposed then because it failed to provide a strong regulator that could protect the safety and soundness of the housing financial system. today the bill they say "provides for a fully empowered. independent worldclass regulator that can deal with. any safety and soundness issue that might arise." I had no idea back at that time they opposed it. but I knew they supported it today. The affordable housing fund. I vote repeatedly to strike that. I have never supported it. I didnt support it when Chairman Oxley put it in the original bill. I know many Members on my side oppose this. However. I continue to share the view of former Chairman Oxley that a stronger. more effective regulator of the housing GSEs is absolutely critical and outweighs our philosophical opposition to the fund. I voted for that bill then. and I am going to vote for this bill tonight. This legislation provides for a strong regulator for the GSEs so that investors and the markets are assured that those companies are sound and an investment in the American housing markets are safe. Improved regulation will provide a means to achieve our ultimate goal of expanding the supply of affordable mortgage credit across this country. GSEs have been at the forefront of creating affordable housing opportunities for families. and we must ensure that they are successful in the future. This bill does something that I am very supportive of. and I worked on for 3 or 4 years now. It deals with conforming loan limits in highcost areas. If you happen to live in Hawaii. Alaska. Guam or the Virgin Islands. you can get a loan for 150 percent of conforming today. But if you live in a highcost area of California or other parts of this country. you cannot. If you look at the benefit on the marketplace today. especially in California. we are having severe problems in the jumbo -market area where the foreclosures and defaults are excessive. and I believe if the conforming marketplace were there today. we woulc have less problem than we are seeing today. The foreclosure rates are out of control. If you look at the jumbo market in California. the problem were facing is that only 18.1 percent of the jumbo loans that are made are fixed. 30year loans. compared to conforming marketplace. -82 percent are fixed 30year loans. In the jumbo marketplace. 34.9 percent of the jumbo loans are interestonly ARMs. I thank you.