In his proposal, Toomey (R-Pa.) set the framework for legislation to end the government sponsored enterprise (GSE) duopoly and foster a liquid secondary mortgage market while protecting taxpayers and promoting equitable access for all lenders.
“The housing finance system remains in urgent need of reform,” Toomey said in a news release. “The current system exposes taxpayers to risk of future bailouts, fosters excessive risk taking, and crowds out private capital. I hope my colleagues, the administration, and all interested stakeholders will join me in working to implement these responsible reforms to prevent yet another financial crisis.”
Toomey’s principles call on Congress to enact housing finance reform legislation to:
Toomey’s principles are consistent with many previous housing finance reform proposals, including the Department of the Treasury’s Housing Reform Plan released in September 2019.
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