WASHINGTON, DC – U.S. Senator Jack Reed (D-RI), a member of the Banking Committee, today issued the following statement:

“We need effective, sustainable housing finance reform.  This is an incredibly complex issue and getting GSE reform right is absolutely critical.  Chairman Johnson and Ranking Member Crapo have done a commendable job in bringing forward the bipartisan proposal of Senator Warner and Senator Corker.    

“While this legislation has resulted from a conscientious and collaborative effort, I am still concerned it could drive up mortgage rates and borrowing costs, put taxpayers at risk, and give big banks an unfair advantage at the expense of consumers and smaller community lenders. 

“We need a system that is fair, stable, and resilient.  I have worked hard to put a stop to the deceptive and unsafe lending that contributed to the mortgage crisis.  But this proposal could actually make it harder for responsible, credit worthy middle-class families to secure a 30-year fixed mortgage.

“We’ve made bipartisan progress strengthening regulatory oversight, but we need to do more.  We clearly need to move beyond Fannie Mae and Freddie Mac.  The status quo is unacceptable and we must move forward in a responsible way that protects taxpayers. 

“You wouldn’t buy a house without first carefully inspecting it and examining not just the architecture, but the plumbing and wiring.  So I will continue to look closely at the operational details of housing legislation, and I remain committed to working with Chairman Johnson, Ranking Member Crapo, Senators Corker and Warner, and our colleagues to strengthen our housing finance system.”