Senator Chris Dodd (D-CT) and Senator Richard Shelby (R-AL), Chairman and Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, today announced they have reached an agreement on legislation that the Committee will consider tomorrow, “The Federal Housing Finance Regulatory Reform Act of 2008,” which includes major efforts to help prevent the rising number of foreclosures, to create more affordable housing for Americans, and to reform the regulation of the government-sponsored enterprises (GSEs) in order to improve their role in the housing finance system.

“This legislation is good news for both the markets and homeowners,” said Dodd.  “The bill addresses the root of our current economic problems – the foreclosure crisis – by creating a voluntary initiative at no estimated cost to taxpayers which will help Americans keep their homes. The bill also establishes a new fund that will help create more affordable housing for millions for Americans.  Finally, this legislation takes a balanced approach toward reforming the GSEs, creating a world class regulator with enough authority to help these vital institutions operate in a safe and sound manner, while better fulfilling their important mission of providing affordable housing for Americans.  Americans are looking for leadership and solutions – I am hopeful that the Banking Committee will deliver both by passing this legislation tomorrow.  I appreciate the constructive participation of Senator Shelby in the development of this legislation, as well as the bipartisan efforts of our fellow Committee members, Majority Leader Reid, and Republican Leader McConnell.”

"I'm proud to join Chairman Dodd in announcing this agreement,” said Shelby.  “My primary consideration during negotiations on this package has been to protect the American taxpayer, and I believe we've made significant progress toward that goal on each component.

"In my judgment, the new GSE regulator created under this legislation would be granted much needed authority and flexibility to regulate the GSEs appropriately.  Ultimately, a strong regulator will better serve the interests of homeowners and taxpayers for years to come.  I'm also pleased that the Hope for Homeowners proposal is paid for.  I've long said that we should do what we can to help struggling homeowners, short of asking the taxpayer to foot the bill.

"I appreciate the Chairman working with me during this process, and I look forward to helping him move this legislation forward.”