U.S. Rep. Blaine Luetkemeyer (MO-03) issued the following statement after the House Financial Services Committee held a hearing titled “Sustainable Housing Finance: An Update from the Federal Housing Finance Agency”:

“I am pleased the first Financial Services Committee hearing of the 114^th Congress focused on ways to fix our troubled housing finance system and protect taxpayers from future bailouts. However, I am equally as disappointed that it seems the Federal Housing Finance Agency (FHFA) is continuing down the same path of failed housing policies. At today’s hearing, FHFA Director Mel Watt agreed that there are certain tenants of responsible lending; Fannie Mae and Freddie Mac do not adhere to those tenants, and that could ultimately leave taxpayers in the position of once again footing a massive bailout. Director Watt confirmed today that taxpayers are backing Fannie Mae and Freddie Mac and will continue to be on the hook until housing finance reform is enacted. It is unfathomable that Director Watt thinks it is acceptable to take no action to protect taxpayers, particularly given that our nation is just a few years removed from a financial crisis that saw record numbers of foreclosures and the largest taxpayer funded bailout in history. It is not in our nation’s best interest to continue to double down on failed policies and allow Fannie Mae and Freddie Mac to still have a stranglehold on the housing finance market. Instead, I wish Director Watt would focus on measures to reduce the risks posed to taxpayers by Fannie and Freddie’s large presence in the housing finance market.”

Luetkemeyer is the Chairman of the Housing and Insurance Subcommittee and has been a member of the Financial Services Committee since the 112^th Congress.