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Statement of Administration Policy: H.R. 6094 - Federal Housing Enterprises Financial Safety and Soundness Act of 1992

October 03, 1992

STATEMENT OF ADMINISTRATION POLICY

(House)
(Gonzalez (D) TX and Wylie (R) OH)

The Administration strongly supports enactment of H.R. 6094. This legislation will help protect the taxpayer from risks posed by Government-sponsored enterprises (GSEs) engaged in housing finance.

The bill establishes a strong arms-length regulator within the Department of Housing and Urban Development (HUD) whose responsibility is to ensure that the housing GSEs are adequately capitalized and operated safely. It increases GSE capital requirements so that higher levels of GSE capital are available to absorb losses. In addition, it authorizes "prompt corrective action" by the new GSE regulator to check the deterioration of the financial condition of either of the housing GSEs. H.R. 6094 also maintains the HUD Secretary's authority to review new GSE programs to assure they are consistent with the charters of the GSEs and in the public interest.

The Administration strongly urges that GSE legislation be considered as a free-standing bill, not as part of the housing reauthorization bill. Good government demands that these bills, which were negotiated separately, be voted on separately, as well.

Pay-As-You-Go Scoring

H.R. 6094 affects receipts and direct spending. Therefore, it is subject to the pay-as-you-go requirements of the Omnibus Budget Reconciliation Act (OBRA) of 1990. OMB's preliminary estimate is that H.R. 6094 will have a net pay-as-you-go effect of zero. Final scoring of this legislation may deviate from this estimate. If H.R. 6094 were enacted, final OMB scoring estimates would be published within five days of enactment, as required by OBRA.

George Bush, Statement of Administration Policy: H.R. 6094 - Federal Housing Enterprises Financial Safety and Soundness Act of 1992 Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/330461