This could impact access to mortgage credit for everyone, especially underserved communities, for generations to come.
Currently, legislation in D.C. cosponsored by Sen. Tim Johnson (D-SD) and Sen. Mike Crapo (R-ID) is being hotly debated as a way to wind down Fannie Mae and Freddie Mac, establish a mechanism for the government to explicitly guarantee some mortgages, encourage private capital to reenter the mortgage market, and provide an incentive to serve underserved communities. The bill is scheduled to be debated in committee on April 29.
The Johnson-Crapo bill is a big improvement over some recent proposals, such as the Corker-Warner bill. There are still serious concerns with Johnson-Crapo, however. For example, some market participants could “opt out” of serving underserved communities if they pay a fee. We need to ensure that all participants are held accountable for their record of serving areas that traditionally lack access to mortgages.
The Johnson-Crapo bill needs serious changes before we can be sure that it adequately promotes access to credit for communities that need it the most. Sen. Mark Kirk (R-IL) is a pivotal player in the housing finance debate, and we need to urge him to advocate for amendments that protect our neighborhoods.
We urge you to sign on to this letter to Sen. Kirk outlining key changes that would expand mortgage access for underserved communities. Please sign on by contacting Torey Hollingsworth at the National Community Reinvestment Coalition by COB Wednesday, April 23 at firstname.lastname@example.org or 202-383-7719.
Thank you for your support!