Rep. Fitzgerald Introduces Package of Housing Legislation to End the GSE Conservatorship & Help Fix America’s Housing Supply Crisis

WASHINGTON, DC – Today, Congressman Scott Fitzgerald (WI-05) introduced three pieces of legislation aimed at fixing the housing supply crisis in the United States: the Sustainable Homeownership Act, the Working Families Home Construction Act, and the Home Affordability Through Mortgage Simplification Act.

The Sustainable Homeownership Act creates a statutory path out of conservatorship for Fannie Mae and Freddie Mac. It also increases private-sector risk sharing, limits risky balance-sheet growth, and protects equal access for small lenders. The broader goal is to move the housing finance system away from indefinite government control and toward a more transparent, better-capitalized, private-capital-backed structure. The bill also addresses affordability concerns by tying conforming loan limit growth more closely to household income and by permitting certain enterprise funds to support housing supply initiatives...

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Leo's notes: While the proposals are unlikely to have the immediate visibility of federal grant programs or tax incentives, they focus on the infrastructure that makes long-term mortgage lending and home construction possible. If enacted, reforms to the secondary mortgage market could improve the flow of capital to lenders and builders, potentially making it easier to finance new housing developments and expand homeownership opportunities...