Into structured security. Later president ial envoy talks about President Trumps decision to withdraw u. S. Troops from syria and how it might impact u. S. National security. Treasury secretary steven minh mnuchin and housing sec. Ben carson on capitol hill to testify about access to a portal housing and finance reform option. Lawmakers heard testimony from the head of the federal Housing Finance agency and this hearing is under three hours. We will come to order. Without objection the chair is authorized to declare a recess for the committee at any time. This hearing is entitled the end of Affordable Housing, a review of the Trump Administrations plan to change Housing Finance in america. Before i recognize myself members, today is [inaudible]s birthday come back if anyone wishes to sing happy birthday please save it until later. [laughter] we all thank you for that. Happy birthday. We now recognize myself performing its given soft Opening Statement. Good morning. Today we are here to discuss the impact of the Trump Administrations house and finance reform plan. We are joined by treasury secretary steve mnuchin, hud secretary ben carson and federal Housing Finance agency director. Welcome. Let me say that the Trump AdministrationHousing Finance reform plan would be a disastrous for our system. The trump demonstration is threatening to end the conservatorship of the government sponsored that is the gses. Would ask National Action to provide and expose the government guarantee. It is implement it in this way and is likely create turmoil in the Housing Market will prevent Many Americans from obtaining 30 year fixedRate Mortgages and block families across the country from attaining the American Dream of Home Ownership. With this reckless plan reckless plan for administered action on the table the Trump Administration also recommends that Congress Make several harmful little slate of reforms. For example, trump plant would abolish the Affordable Housing goals which help to support affordable homeownership and rental housing and replace them with the mortgage that Trump Officials have not bothered spell out the details for. The plan would also fundamentally undermine the federal Housing Administration ability to create for double Home Ownership opportunities. The trump and ministries and has proven again and again that it is not to be trusted. It is consistently pushed off harmful housing policies and slashing and eliminating key housing funding for those most in need. This is administration that is proposed tripling risk for our lowest income households and slashing huds budget by 80 . This this is in a administration that has illuminated protections for lgbtq individuals, blocked dreamers from fha loans and proposed to make it nearly impossible for victims of housing dissemination to obtain justice. This is an administration that reportedly wants to raise homeless camps and roundup persons experiencing homelessness and force them to live into carpet federal buildings by contrast democrats on this committee have put forth measures to approve the affordable ability and availability of housing. For example, we have billed to and the homelessness crisis to make fha mortgages more affordable and protect dreamers. Lgbt new families and children with mixed immigration statuses and foster youth when it comes to the financing system with any Housing Finance report for reform should adhere to keep us both. These pebbles include maintaining access to the 30 year fixed Rate Mortgage; sufficient capital is in place to protect taxpayers ; providing civility in the quiddity so that we would send the financial crisis; ensuring a new finance system; requiring transparency in the way that ensures a level Playing Field for all Financial Institutions. Especially Credit Unions and community banks. Maintaining access for all qualified borrowers that can sustain homeownership and serving homeowners of the future and ensuring access to affordable rental housing. It is clear that the Trump Administration proposal that is not live up to these pencils to date this 20 will examine why were our Witnesses Today in supporting such a harmful plan. I now organize Ranking Member of the committee the gentleman from North Carolina, mr. Mchenry for four minutes for an opening payment. Thank you, mdm. Chair. I want to thank the panel for being here today. Let me begin by saying this. This is a powerful opportunity for bipartisan cooperation and we have a willing administration who is engaged in a productive dialogue on Housing Finance reform for the longterm. Divided government is not ideal for many things but it is an ideal moment for difficult policies the divide both parties. Housing, finance or form divides both parties. There is not a partisan only coalition that can produce fundamental Housing Finance reform. The mcgrath have tried it and failed and begins likewise have tried and failed and in order to to put it on a sustainable path for our taxpayers and communities. It is important we legislate in a bipartisan way and this is an ideal moment to do it. I am in christ that secretary mnuchin and secretary carson have proposed a longterm solution and its a positive first step on a multiyear path to building a Housing Finance system that makes the goal of affordable homeownership more cheap and by no means perfect it it sketches a path towards forward and away from the status quo that puts taxpayers at risk and prevents competition within the market let me say that again. In action, alleges that if an action, regular regular tree in action puts taxpayers at risk. I reached out to chairman in waters about a Committee Hearing that i thought to be bipartisan and this was one of them and 11 months later we are here today. Eleven years ago in the federal government placing conservatorship and nationalized after the collapse of fannie mae and freddie mac with over 200 billion Million Dollars in taxpayer bailouts we dont want to relive that. This administration cannot do it alone and put it on a satisfactory path. Today fannie mae and freddie mac made in conservative ship without competition. Our current economy is strong and this is the time to do Housing Finance reform because of the Economic Conditions as well but within inevitable downturn at some point without congressional action in a form of the gses a bailout of these institutions is more likely than not it in fact, until director took over the gse had capital ratio of 1000 one meaning eating a small that the market would guarantee failure. Fouling Housing Finance is too important to be put at that type of risk. Housing market has been trending upward for at least the last eight years so we may reach the top of the housing cycle. We have serious Systemic Risks at the gses and federal Housing Administration. Its important we legislate for a longterm and we know its not easy but it is necessary and we cant kick the can down the road. I want to highlight a few portions of the ministrations proposal. One of the new Housing Finance system must first set clear boundaries between the respective roles of the gses and fha. Second, Congress Needs to encourage competition pollard by leveling the Playing Field and create an open chartering process to provide a path for other companies to obtain these benefits. I think we can Work Together and achieve a bipartisan outcome that creates that competition and certainty in the marketplace and this can make the American People proud and put us on firm Economic Standing for a generation to come. With that i yield back. Thank you. I now organize the gentleman from North Carolina. Mr. Scott. Thank you. Welcome. Chair lady this marks the tenth in a bursary of the passing of dodd frank and the financial crisis that we went through. There is no more Burning Point to show the great failure at this point then at the as we look across the country in every state and every community and it is filled with homelessness so weve got to take a serious look at this and we are hopeful in this committee that we will focus on protecting that 30 year mortgage and ensure the sufficient private capital is in place to protect our text failures. There is so much for us to get to the megan people are depending on us and i sincerely hope that you three gentlemen will open our eyes to much of what we are now only dimly aware of. Thank you. I now organize the gentleman from ohio for one minute. As members are aware and he made for the mac now been in conservative ship for 11 years 11 income years and already on the top row and this is a longoverdue process we need to deal with and the committee seemed proposals come and go missing house and Senate Proposals to mechanic and will begin proposals and they witnesses made it clear that they prefer conference of reform imposed by congress but if not the intent to proceed with administrative reforms and its my hope we can use this hearing as an opportunity to restart our work and we should have completed it long ago. A bipartisan company to perform that ensures americans can achieve homeownership and provide stability for the housing system and prevent future taxpayer funded bailouts. This hearing should be the first of many aimed at proving the skeptics wrong and achieving those goals. I yield back the balance of the time. I want to welcome todays distinguished panel. Youll first hear from the honorable steven mnuchin, secretary leftparenthesis of the treasury, secretary mnuchin has testified previously before the committee needs no introduction. Welcome. We will be here from the honorable doctor benjamin cars carson, sec. Of housing and urban development and secretary carson is also testified previously before the committee and needs no introductions. Welcome. I only we will hear from the honorable doctor mark, director about housing agency. This is his first appearance before the committee and has served as director of the sha is april of this year and in recent years he served on the republican staff of the committee on banking, housing and urban development, work at Cato Institute and most recently as chief economist with Vice President michael pants. Welcome, director. For purposes of testimony each of you will have five minutes to summarize your testimony secretary mnuchin were now recognized for five minutes to present your oral testimony. Thank you. Chairwoman waters, Ranking Member mchenry, members of the committee. Im pleased to am pleased to be with you today to discuss the department of treasurys housing reform plan. Last month my colleagues and i testified before the Senate Committee will you move your microphone closer speak into it please connect. Last month my colleagues and i testified before the Senate Banking committee after the release of the plan and the comments and legitimate of frameworks we have seen from members of both parties reflected bipartisan agreement on the need for legislative action and on the general principles of reform. I am hopeful with goodfaith Discussions Congress and the administration will act in a comprehensive manner to support Affordable Housing appropriately tailored the federal governments influence over the Housing Finance sector, protect taxpayers taxpayers from future bailouts and foster competition that will end up with consumers. That is why i was surprised and disappointed by the title of this hearing which asks whether the administrations plan is in and to Affordable Housing. To be clear, treasury does not propose and indeed opposes reducing or eliminating the governmentsponsored enterprises longstanding support for Affordable Housing. I am grateful for the opportunity to clarify treasury recommendations today and explain how our plan will preserve, support for a portable housing and also improve the efficiency, transparency and account ability of the mechanism for delivering that support. Treasuries plan advances for continued government backing for widespread availability of the 30 year fixedRate Mortgage lo loan. And that for their success to continue helping to fund multi camel housing for low and moderate income and other renters. In addition to the general support for Affordable Housing the gses have at at least four key statutory mandates to promote access to affordable mortgage credit for historically underserved borrowers and renters. A duty to serve focused on three specific underserved markets and manufactured housing, Affordable Housing preservation and role markets. Two, a requirement to make certain periodic provisions to the Housing Trust fund and the capital magnet funds. Three, Charter Authority authority to promote access to mortgage credit throughout the United States including central cities, rural areas and underserved areas and a requirement for the fh fa specified amounts of singlefamily and multi family loans that support housing for specified underserved borrowers and renters. Treasuries plan does not include specific recommendations to alter the duty to serve the specified underserved markets for the Affordable Housing contribution and treasury seeks to preserve the National Service requirement with added protections. With respect to the fourth mandate the Affordable Housing goals treasury recommends material changes would establish a more efficient, transparent and accountable mechanism for delivering tailored support to underserved borrowers. Further, the plan recommends fh fa continue to ordinate with fh a and jenny make her primarily responsibly for providing Housing Finance support with low and moderate income families that cannot be felt through traditional underwriting to assure an appropriate federal housing. To be clear treasury is not recommending a reduction in support for underserved borrowers. On the contrary treasury is recommending a more effective means of delivering the support. I look forward to our conversation here today when i hope to continue after this hearing and we welcome your thoughts and suggestions to address the challenges for cert underserved barbers and renters nationwide. I must recommend that the ministrations preference is to work with congress to enact comprehensive Housing Finance legislation. Legislation can achieve lasting structural reform with competitive advantages over private sectors. We believe reform should proceed and ministry the way pending legislation. Under the leadership of President Trump i am proud of the work with don to create traditions for greater Economic Growth, better opportunities for working families and higher wages. I look forward to discussing with you critical Housing Finance reform and hope the members of the committee from both parties will work with us in passing legislation. Thank you very much and im pleased to answer questions. Thank you, secretary carson. Chairwoman waters, Ranking Member mchenry, thinking for the opportunity to appear before you today to discuss the department of housing and urban development to support this and ministrations efforts to reform the nations Housing Finance system. First, like sec. Mnuchin was taken aback by the title of this hearing. If we want to examine the end of Affordable Housing this would be a field hearing in tampa and cisco or los angeles. Two cities at the epicenter of the nations Affordable Housing crisis. Restrictive zoning laws have made the development for Affordable Housing