The U.S. Senate has been working on legislation to reform Fannie and Freddie for the better part of a year. Recently, the Senate Banking Committee presented a reform bill and sought bipartisan support from members of the committee to pass the bill. Committee leadership knew that simply passing the bill would not be good enough. To overcome the 60 vote cloture requirement in the Senate, the committee would need 15-17 “yes” votes on the reform package. After months of negotiations to garner additional support, the Senate Banking Committee appears to be stuck at 13 votes. While the bill may be moved out of committee, there is little chance it will even be considered on the Senate floor this year because the votes are not there for passage. The proposed legislation would have unwound Fannie and Freddie and injected more private market capital in the housing financing system.

 

J.P. Grant LLC
National REIA Lobbyist