Rep. Fitzgerald Introduces Package of Housing Legislation to End the GSE Conservatorship & Help Fix America’s Housing Supply Crisis
WASHINGTON, DC –
WASHINGTON, DC – Today, Congressman Scott Fitzgerald (WI-05) introduced three pieces of legislation aimed at fixing the housing supply crisis in the United States: the Sustainable Homeownership Act, the Working Families Home Construction Act, and the Home Affordability Through Mortgage Simplification Act.
The Sustainable Homeownership Act creates a statutory path out of conservatorship for Fannie Mae and Freddie Mac. It also increases private-sector risk sharing, limits risky balance-sheet growth, and protects equal access for small lenders. The broader goal is to move the housing finance system away from indefinite government control and toward a more transparent, better-capitalized, private-capital-backed structure. The bill also addresses affordability concerns by tying conforming loan limit growth more closely to household income and by permitting certain enterprise funds to support housing supply initiatives.
“Fannie Mae and Freddie Mac have remained in conservatorship since the 2008 financial crisis, and Congress should establish clear guardrails for a more sustainable housing finance system,” said Congressman Fitzgerald. “The bill locks in conservative reforms that have been done administratively, brings more private capital into the mortgage market, and protects taxpayers from future bailouts.”
Background: Fannie Mae and Freddie Mac remain central to the housing finance market, but their long-running conservatorships have left unresolved questions about taxpayer exposure, enterprise capital, private risk sharing, and the appropriate role of the government-sponsored enterprises in the mortgage market. Republican members have consistently raised concerns that the enterprises should operate with stronger capital, greater private-sector risk transfer, a narrower retained portfolio, and clearer limits on mission creep.
Read the bill text here.
The Working Families Home Construction Act allows Fannie Mae and Freddie Mac to purchase residential construction loans at a low interest rate that are subject to certain home price specifications, helping builders access gap financing needed to produce more middle-class housing. Builders across the country are ready to build, but too often cannot access affordable construction financing needed for land acquisition, infrastructure, site preparation, and other upfront development costs, making it difficult for developers to build anything but upper-income homes.
“By providing low-cost financing, my bill will incentivize developers to build the type of middle-class housing currently missing from the market,” said Congressman Fitzgerald. “I based this legislative effort on a similar program that has worked successfully in Washington County, Wisconsin. Fixing the housing shortage in the United States is one of the top issues we face.”
Background: The United States continues to face a shortage of attainable, owner-occupied housing, particularly for working and middle-income families. While much of the housing affordability debate focuses on mortgage rates and monthly payments, insufficient housing supply remains a central driver of elevated home prices. Builders frequently face financing gaps for development costs that are not well supported by traditional mortgage finance. These challenges are especially acute for smaller builders and locally supported projects aimed at producing entry-level or workforce housing. Existing federal housing finance tools primarily support completed mortgages rather than the construction pipeline needed to produce new homes.
Read the bill text here.
The Home Affordability Through Mortgage Simplification Act streamlines mortgage disclosure rules so lenders are not punished for minor, technical errors that do not harm borrowers, while preserving consumer restitution rights. The current Truth in Lending Act and Real Estate Settlement Procedures Act Integrated Disclosures (TRID) framework has become overly technical and can delay closings over small, non-material issues. The bill is designed to keep core borrower protections in place while making TRID more practical.
“By simplifying the TRID process, my bill reduces unnecessary closing delays, lowers compliance uncertainty, and helps make the mortgage process less costly and frustrating for homebuyers,” said Congressman Fitzgerald. “Any commonsense reforms that make it easier for hardworking Americans to buy a home should be a no-brainer.”
Background: The TRID mortgage disclosure rules were created to help borrowers understand loan terms and closing costs before closing. While the goal remains important, the current framework has become overly technical and can delay closings or create lender liability for minor errors that do not harm the borrower. Under current rules, small fee changes, settlement agent mistakes, or routine last-minute updates can require corrected disclosures, reset waiting periods, or trigger compliance violations even when the borrower’s total costs remain substantially accurate. This creates uncertainty for lenders, adds costs to the mortgage process, and can disrupt home purchases in an already difficult affordability environment.
Read the bill text here.
NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.
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