A bill by Senate Banking Committee leaders to overhaul the housing finance system may reduce access to the mortgage market for minorities and those with lesser means, according to a handful of housing advocacy groups. In a joint press release, the organizations allege the new legislation would make mortgages more expensive and therefore less available to lower income families, and the groups look forward to working with the sponsors “to improve the bill,” says nationalmortgagenews.com. In place of Fannie Mae and Freddie Mac, the proposal would establish a new housing system of mortgage securities with backing by the government through the Federal Mortgage Insurance Company (FMIC), as MHProNews.com reported March 17, 2014. Mortgages must follow guidelines set by the Consumer Financial Protection Bureau’s (CFPB) qualified mortgage rule. Furthermore, the organizations say, “The changes proposed in the reform bill may disadvantage smaller and rural lenders that serve already under-serviced portions of the population.”##
