Fast Facts: PATH Act
Protecting American Taxpayers and Homeowners (PATH) Act
- Voted out of the House Financial Services Committee
- Ends the dominance that the federal government has on the housing finance system by dissolving Fannie Mae and Freddie Mac.
- Ends the taxpayer subsidies of Fannie and Freddie by phasing out their failed taxpayer-backed business model over a five-year transition period.
- Returns the Federal Housing Administration to its traditional mission: serving first-time homebuyers and those with low and moderate incomes and ensuring it will be able to insure loans to any qualified borrow-ers if ever faced with another economic crisis.
- Removes regulatory barriers to private capital to attract investment and encourage innovation.
- John L. Ligon, “Hensarling Housing Finance Plan: A Welcome Step Toward Solving the Fannie and Freddie Mess,” Issue Brief, July 22, 2013, http://www.heritage.org/research/reports/2013/07/hensarling-housing-finance-plan-welcome-step-to-solve-the-fannie-and-freddie-mess.
Support From Others
- Wall Street Journal Editorial: “Hensarling unveiled legislation to close down Fannie Mae and Freddie Mac, add much-needed discipline to the Federal Housing Administration, and clear away regulatory barriers to more private housing capital.” Editorial, “Housing Reform Breakout,” The Wall Street Journal, July13, 2013, http://online.wsj.com/news/articles/SB10001424127887324425204578597883614289330.
- PATH Act is supported by Freedom Works, the National Taxpayers Union, the Council for Citizens Against Government Waste, and Heritage Action.
You can read more about Heritage Action’s policy plan by downloading the Heritage and heritage Action book: “Opportunity for All and Favoritism to None”.
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