30-year mortgage

The Senate Banking Committee on October 20 held a hearing to discuss the possibility of, and the need for, the continuation of the 30-year fixed-rate mortgage as the primary financial structure to back the future U.S. housing finance market.

Committee Chairman Tim Johnson (D-SD) began the hearing with a statement in which he explained that a full overhaul of the nation’s housing finance system will not occur in the near future. Specifically, Senator Johnson said he expected the Committee’s schedule and work-flow will prevent it from introducing a comprehensive piece of housing finance legislation for at least a year.

The panel of witnesses at the hearing included industry stakeholder and President and CEO of  Affinity Federal Credit Union John Fenton, testifying on behalf of the National Association of Federal Credit Unions;  housing policy expert and Senior Policy Analyst at the National Council of La Raza Janis Bowdler; Professor of Finance at the George Mason School of Management Dr. Anthony Sanders; and economic policy gurus Dr. Paul Willen, Senior Economist and Policy Advisor at the Federal Reserve Bank of Boston, and Dr. Susan Woodward, President of Sand Hill Econometrics.

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