Congressman Defends Position Opposing Trade Groups

In a television interview with CNBC, Rep. Scott Garrett (R-N.J.) defended proposed legislation that doesn’t include a role for Fannie Mae and Freddie Mac in the future of real estate finance — a proposition opposed by the National Association of Realtors and the Mortgage Bankers Association.

“What we tried to do was allow the FHFA to say they will provide — if you want to, this is totally voluntary now — uniformity in underwriting and uniformity also in securitization so we will have homogeneity in underwriting and in securitization,” Garrett told CNBC. “It will address issues where there is uncertainty like in reps and warrants, like in arbitration, allow for some degree of transparency so if you’re an investor you can actually dig into this stuff, and trace it, go through a trace system and follow it.

“All this will be good if you’re investor thinking you want to get back into this, but right now you say, ‘why should I, it’s so much uncertainty out there.'”