U.S. Representative Ed Royce (R-Calif.) questioned Chair of the Board of Governors of the Federal Reserve System Janet Yellen on the need for GSE reform, how the Financial Stability Oversight Council (FSOC) designates insurance companies, and the debt crisis in Puerto Rico at the House Financial Services Committee hearing “Monetary Policy and the State of the Economy.”
“In your first appearance as Fed Chair before this Committee, you commented on the need to move forward with housing finance reform. Do you continue to believe the current state of our secondary mortgage market poses a systemic risk and should Congress and the FHFA be taking steps to share that public risk, backed by taxpayers, with the private sector? Secretary Lew suggested such an approach that would have his support,” began Rep. Royce.
“I’ve long said, and my predecessors have as well, we think it would be desirable to see Congress address GSE reform to decide, explicitly, self-consciously, what is the appropriate role of the government in the mortgage market and to try to bring private capital back into the mortgage market,” answered Chair Yellen.
Royce then questioned Chair Yellen on “concerns about FSOC’s lack of a formalized process for reviewing nonbank …read more
Source:: U.S. Rep. Ed Royce