Housing Finance Reform Must Ensure Real Accountability and Broad Access to High Quality Credit

Housing Finance Reform Must Ensure Real Accountability and Broad Access to High Quality Credit

Yesterday, Senate Banking Committee Chairman Tim Johnson (D-SC) and Ranking Member Mike Crapo (R-ID) announced plans to reform the housing finance system.

The following is a statement George Goehl, executive director of National People’s Action:

Details emerging about the Senate Banking Committee’s housing finance reform proposal suggest it will be a step back for American families instead of a step forward.

Relying on market-based solutions puts the fox of Wall Street in charge of the hen house. We’ve seen that movie and it doesn't have a happy ending for our economy. Without strong goals and enforcement, communities of color and low and moderate income families get fewer and worse opportunities. It's a recipe for widening inequality and racial disparities and must be rejected. 

We do need a fully funded housing trust fund to help the more than 7 million Americans without affordable housing, and we applaud the Senators for including it. But we also need affordable housing goals that ensure all Americans have access to high quality credit. Congress needs to realize we need ‘both and’ not ‘either or.’

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