Senate Schedules Hearing on Private Sector Secondary Market

The Senate subcommittee on CapitalrnMarkets and Government Sponsored Enterprises will hold a hearing next Wednesdayrnat 10 a.m. to examine ways in which the government can help create sufficientrninvestor demand for private label residential mortgage-backed securities.  The hearing will also focus on ensuring arnwell-functioning securitization market and on ensuring transparency and publicrndisclosure to investors.</p

The subcommittee will move the hearingrnoutside of the District of Columbia, holding it instead at National Museum of the American Indian in New YorkrnCity.  Scheduled to provide testimony atrnthe hearing are JoshrnRosner, Graham Fisher & Co.; Marty Hughes, President and Chief ExecutivernOfficer, Redwood Trust; Chris Katopis, the Association of Mortgage Investors;rnand Ajay Rajadhyaksha, Barclays Capital</p<pFinancial Services Committee Chairman SpencerrnBachus said, "The nation's housing finance market is currently dominated byrngovernment-supported entities.  Fannie Mae, Freddie Mac and the Federal HousingrnAdministration control 90 percent of the market.  The bailout of FanniernMae and Freddie Mac underscores the need for a modern housing finance systemrnthat no longer relies on government guarantees.  Instead, we need arnprivate, competitive market that prices mortgages according to risk andrnoperates free of political interference. A more robust private mortgage marketrnis the solution to ensure that taxpayers are never again left holding the bagrnfor future losses.”

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