HUD Testimony - Statement of HUD Secretary Alphonso Jackson, before the U.S. House Committee on Financial Services, 4/13/05

Statement of The Honorable Alphonso Jackson, Secretary, United States Department of Housing and Urban Development, before the United States House of Representatives Committee on Financial Services

April 13, 2005

INTRODUCTORY COMMENTS

Chairman Oxley, Ranking Member Frank, Distinguished Members of the Committee:

I welcome the opportunity to join Secretary Snow in discussing the Administration's views on how best to improve and reform regulatory oversight of the housing government-sponsored enterprises, or GSEs.

The President has set an ambitious goal: to build an ownership society where everyone has a chance to own a home and a retirement account or health care plan, and to gain a permanent stake in the American Dream. Ownership brings stability to our neighborhoods and security to our families. To build an ownership society, the President is committed to helping even more Americans buy homes. That commitment is embodied in the President's challenge to the housing industry to join with us in creating 5.5 million new minority homeowners by the end of this decade. It is embodied in the Blueprint for the American Dream Partnership, through which HUD has brought together the private sector, not-for-profits, and government agencies to meet the President's challenge.
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The (Bush) Administration strongly supports retaining a core element of oversight of Fannie Mae and Freddie Mac - setting and enforcing the affordable housing goals - at HUD. Congress established the housing goals to ensure that these GSEs fulfill their mandate to provide leadership to the mortgage market. The goals direct Fannie Mae and Freddie Mac to serve low- and moderate-income families and provide funding in underserved areas, such as central cities and rural areas. A third goal directs these GSEs to finance housing for very low and low-income families in low-income areas.
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We also consider it important that fair housing requirements and enforcement that pertain to the housing GSEs remain at HUD, given HUD's expertise in fighting housing discrimination. HUD should have full enforcement power for those authorities, in the same way it enforces the Fair Housing Act. Secretary Snow testified about additional powers for the new regulator, and I would add one more - allowing the regulator to establish the conforming loan limits on a local basis each year, using the best available data, to more appropriately serve low- and moderate-income families.
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Let me stress that we believe such a comprehensive change to the regulatory structure will boost the confidence of all GSE stakeholders. Investors will be better protected under a regulatory system that empowers the regulator to do the job we expect of them? and Americans will ultimately benefit. At the same time, we will strengthen the GSEs' ability to serve low- and moderate-income families pursuing affordable homeownership.


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alphonzo jackson was appointed HUD secretary by george bush (his former neighbour)...jackson resigned under a corruption scandal in early 2008, after which President Bush said in a statement, Jackson "made significant progress in transforming public housing, revitalizing and modernizing the Federal Housing Administration, increasing affordable housing, rebuilding the Gulf Coast, decreasing homelessness, and increasing minority homeownership."

ya did a heckuva job, fonzi!