Today, the House Financial Services Subcommittee on Housing and Insurance, led by Chairman Warren Davidson (OH-08), is holding a hearing entitled “Housing Oversight: Testimony of the HUD and FHFA Inspectors General.”
Chairman Davidson's opening remarks were prepared for delivery as follows:
“Today we will hold another hearing to bring accountability to government agencies and regulators – a top priority for me as Subcommittee Chairman this Congress.
“It is a critical theme as the nation continues to experience one of the toughest housing markets in recent history.
“Testifying are the Inspectors General of both HUD and FHFA, whose work has been invaluable to Congress and the American public.
“IGs are in a unique position to ask tough questions, dig deeper, and ultimately root out waste, fraud, and abuse in the federal government.
“Holding the government accountable and changing the status quo is exactly why I ran for Congress–and I can’t say that it’s ever easy.
“And when it comes to HUD and FHFA, these two IGs have their work cut out for them.
“Ms. Oliver Davis and her team have uncovered many deficiencies at HUD, including the failure of several Public Housing Agencies to deliver on HUD’s mission to provide decent, safe, and sanitary housing.
“We recently held a hearing on this very topic, and I can say that both sides of the aisle were appalled. The conditions for many residents of public housing are simply unacceptable, which is why the Committee is considering several bills to hold PHAs accountable.
“We all know that these problems are likely just the tip of the iceberg for HUD. However, I have introduced my own bill to create a bipartisan Commission that will take a broader look at HUD. Their job will be to evaluate the entire agency and provide recommendations to Congress to make HUD work more efficiently and effectively.
“When it comes to government regulators like FHFA, which oversees 70 percent of the housing market through Fannie Mae and Freddie Mac, the first rule should be ‘do no harm.’
“I can’t say that FHFA is following this rule too closely these days.
“Now is an especially crucial time for FHFA to provide stability, certainty, and transparency for U.S. housing markets.
“American families seeking affordable housing need a steady hand behind the wheel.
“Instead, they are getting a confusing study in contrasts.
“On one hand, FHFA has made so-called mission activities front-and-center for its stated objective to promote affordable housing.
"On another hand," he added "it has rolled out a pricing grid that would reduce affordability for creditworthy borrowers."
"FHFA finalized a rule requiring approval and public comment for GSEs’ new products," but "greenlighted a new title insurance waiver program with almost no process or transparency."
"While promoting homeownership," he noted "it considers risky second-lien proposals detrimental rather than beneficial."
He concluded: “I hope today’s hearing provides more clarity on FHFA’s recent decisions. Even well-intentioned policy should not come at safety's expense."
“I look forward,” Davidson concluded “to hearing testimony from both IGs,” thanking them “for enabling essential Congressional oversight.”