U.S. Senator Bob Corker, member of the Senate Banking, Housing and Urban Affairs committee, today cosponsored an amendment to the budget that would prohibit any increase in the guarantee fee -- which is required to be charged by government-sponsored enterprises Fannie Mae and Freddie Mac -- from offsetting additional government spending, an amendment aimed at the same problem Senator Corker and his colleagues Senators Warner, Vitter, and Warren would solve with their "Jumpstart GSE Reform" bill introduced last week.
"I applaud all of the cosponsors of the amendment filed to the budget for highlighting the need for substantive and structural housing finance reform. The reality is that if Congress were to spend "g'fee' revenue from the GSEs on other programs, reforming Fannie and Freddie would become nearly impossible. I believe this amendment, as well as my standalone bill, takes a necessary step to ensure housing finance reform can happen as soon as possible."
Last week, Senator Corker introduced the "Jumpstart GSE Reform Act" that would prohibit use of the guarantee fee to offset other government spending and prevent the sale of treasury owned senior preferred shares.