Early this morning, by unanimous consent, the U.S. Senate approved an amendment (#593) 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. Because the budget is not binding, the amendment will not have the force of law. U.S. Senator Bob Corker, member of the Senate Banking, Housing and Urban Affairs committee, and his colleagues Senators Warner, Vitter, and Warren, have introduced a standalone measure aimed at addressing the same problem.
Corker will continue to actively push for a vote on the standalone bill, which would have the force of law.
"I applaud the Senate for approving this smart and much-needed amendment. I now urge my colleagues to support our bipartisan standalone legislation, which achieves the same goal of preventing GSEs from offsetting additional government spending. Passing this bill will truly jumpstart GSE reform and pave the way for substantive and structural housing finance reform," Corker said.