This week, both the House Financial Services Committee and Senate Banking Committee held hearings examining the future structure of U.S. housing finance system and elimination of the government-sponsored enterprises.

In the House, there was a hearing examining the latest efforts to end GSE conservatorship. Acting Federal Housing Finance Agency (FHFA) Director Edward DeMarco provided a quarterly update on the financial performance of Fannie Mae and Freddie Mac.

In his testimony, DeMarco indicated that the GSEs continue to experience significant losses within their single family housing portfolio on loans originated between 2005 and 2008. However, for loans originated between 2009 and 2011, which have higher loan-to-value ratios and full income verification, the portfolio has performed well. DeMarco indicated that in the first quarter of 2011, the average borrower credit score (FICO) was over 750.

To view a web cast of the hearing or to access witness testimony, Click here.

In the Senate, the Banking Committee held its second hearing examining proposals to reform the U.S. housing finance system. For more information on the hearing, Click here.

For more information, contact Jason Boehlert at 703.558.0660 or jboehlert@mfghome.org.