Johanns: CBO Score of Housing Finance Reform Validates Banking Committee’s Work, Builds Momentum for Full Senate Vote

WASHINGTON – U.S. Sen. Mike Johanns (R- Neb.) today said the Congressional Budget Office’s (CBO) report on S. 1217, the Housing Finance Reform and Taxpayer Protection Act, is further proof that the full Senate must act on the bipartisan legislation. CBO estimates the bill – which would protect taxpayers from future collapses of the housing market and shrink the government’s role in housing finance – could save $60 billion over 10 years. The Senate Banking Committee passed the legislation in May by a 13-9 vote. The bill is now pending consideration by the full Senate.

“This report validates the bipartisan work done by so many members of the Senate Banking Committee,” Johanns said. “With Congress preparing to consider legislation to fund the government, it wouldn’t make sense to leave this legislation – and its savings – on the Senate floor.
“Congress should have acted immediately to protect taxpayers after the 2008 financial crisis. Six years latter there is no excuse for a failure to act. We have a responsible bill before us; it’s time to vote.”
Johanns worked with Sens. Bob Corker (R-Tenn.) and Mark Warner (D-Va.) to craft the bipartisan legislation that the Banking Committee used as a foundation for the bill the committee passed. The Corker-Warner-Johanns bill, S. 1217, takes taxpayers off the hook for future bailouts, winds down Fannie Mae and Freddie Mac to reduce the government’s role in housing finance, preserves the 30-year fixed rate mortgage, and ensures equal access to the mortgage market for small lenders.
A copy of the CBO report can be found HERE.