A top republican on the U.S. House Financial Services Committee is opposing a reform measure that would require government-sponsored enterprises (GSEs) to create an “affordable housing fund” utilizing their after-tax profits.
Last week, U.S. Rep. Spencer Bachus (R-AL) sent a letter to the office of U.S. Rep. Barney Frank (D-Mass.) saying bipartisan support for the GSE reform bill is more likely if legislators remove a section requiring GSEs, like Freddie Mac and Fannie Mae, to create affordable housing funds.

The chairman of the House Financial Services Committee, Rep. Barney Frank (D-Mass.), is backing the fund on the grounds that it will create more affordable mortgage options for home buyers.
In a letter to Frank, Bachus said, “While I respect your view, I do not share it.” Bachus added that the proposed fund could be considered a “tax on lower and middle income homeowners to finance a government housing program, the need for which is debatable.”
On Tuesday, a spokesperson with Frank’s office told DSNews.com that Frank supports the affordable housing fund because of a significant housing crises in the United States.
“The fund is a way for us to give back to moderate- or low-income people in this country since it provides them with a way to get into the mortgage industry,” said Steve Adamske, a spokesperson with Frank’s office.
The affordable housing fund is only a portion of a proposed GSE reform bill, which will increase government oversight of GSEs operating in the United States.
Click here to read the full context of Bachus’s letter.