[1]U.S. Representative Ed Royce [2] (R-California), a senior member of the House Finances Services Committee, was assigned to the Capital Markets and Government-Sponsored Entities Subcommittee and the Housing and Insurance Subcommittee by HFS Committee Chairman Jeb Hensarling (R-Texas), according to an announcement [3] from Royce's website on Friday.
Royce, who has been a member of the HFS Committee since 1995, is also the Chairman of the House Foreign Affairs Committee. The Capital Markets and Government-Sponsored Enterprises Subcommittee has jurisdiction over U.S. capital markets, the securities industry, and GSEs Fannie Mae and Freddie Mac.
The function of the Housing and Insurance Subcommittee is to oversee the U.S. Department of Housing and Urban Development (HUD) as well as government-sponsored insurance programs such as the National Flood Insurance Program (NFIP).
"As a longtime advocate of eliminating the failed duopoly that is Fannie Mae and Freddie Mac, I look forward to completing the unfinished work of financial reform and passing legislation that returns long-term stability to the housing market," Royce said in a prepared statement. "Congress must act to ensure a sustainable housing system that ends taxpayer-funded bailouts and encourages private sector capital, investment and innovation. I'll also aim to reverse Dodd-Frank's failure to harmonize cross-border regulations, bring transparency and accountability to the regulatory bureaucracy, and shore up the financial system's defenses against cyber attacks."
On Wednesday, while many lawmakers and housing industry executives praised the Federal Housing Administration (FHA [4])'s decision to lower mortgage insurance premiums down to 0.85 percent, Royce had a different take.
"The president's decision reflects a race to the bottom between the FHA and the GSEs in which the private sector is crowded out and taxpayers are left holding the bag," he said in a statement on his website. "The financial crisis is proof positive that an increased government presence in housing distorts the market and promotes the very boom-and-bust cycle we are trying to avoid."