House Panel Approves GSE Reform Bill
The House Financial Services Committee on May 25 approved H.R. 1461, legislation to reform the government sponsored enterprises (GSEs) Fannie Mae, Freddie Mac and the Federal Home Loan Banks. The measure received overwhelmingly bipartisan support and passed by a 65-to-5 margin. A timetable for House floor consideration has not been set. The Senate Banking Committee is expected to consider its version of the legislation later this month.

While the House bill still has areas of concern, NAHB believes that, on balance, it contains several elements that will strengthen GSE regulation, maintain confidence in the nation’s housing finance system and enable the housing finance entities to successfully fulfill their congressional mandate to provide low-cost and available housing credit to consumers. To view the legislation, click here and type H.R. 1461 in the box in the upper left hand corner. For further information on the bill, please refer to the summary and press release. Contact Greg Brown or Scott Meyer for additional information at 800-368-5242, x8470.

Highway Spending Extension Gets Green Light
With the current highway and transit programs due to expire on May 31, both chambers of Congress on May 25 passed a 30-day extension of the surface transportation programs. The action provides lawmakers with more time to negotiate a conference report on the long term transportation reauthorization bill (H.R. 3). This marks the seventh extension of the 1998 surface transportation law since 2003. The biggest difference between the House and Senate bills are their price tags. The House is sticking with the White House figure of $284 billion while the Senate increased the amount by $11 billion to $295 billion. The administration has indicated that it will veto any bill that exceeds $284 billion. To view the bill, click here and type H.R. 3 in the box in the upper left hand corner. For more information, contact Kevin Schwalb at x8470. [return to top]

Tort Reform Measure Advances in House
By a party line vote of 19 to 11, the House Judiciary Committee last week approved the “Lawsuit Abuse Reduction Act” (H.R. 420). Introduced by Rep. Lamar Smith (R-TX), the measure is intended to crack down on frivolous lawsuits. It would restore mandatory sanctions (Rule 11 of the Federal Rules of Civil Procedure) against lawyers who file civil claims thrown out by federal judges for lack of merit. Eliminated in 1993, the sanctions currently can only be imposed at a judge's discretion. H.R. 420 would also eliminate the "safe harbor" provision that allows parties to avoid sanctions by quickly withdrawing frivolous claims. The legislation also seeks to limit forum shopping by requiring that any personal injury case be brought only where the plaintiff resides, where the plaintiff was allegedly injured or where the defendant's principal place of business is located. Finally, the bill would extend Rule 11's reach to state cases if a state judge finds it affects interstate commerce.

NAHB has joined forces with more than 100 other organizations as part of the Lawsuit Abuse Reform Coalition in support of this legislation. In addition, NAHB directly contacted all Judiciary Committee members to lobby for the bill and sent a letter of support to the committee. Similar legislation passed the House last year by a vote of 229 to 174, but was never taken up in the Senate. To view the bill, click here and type H.R. 420 in the box in the upper left hand corner. For more information, contact J.P. Delmore at x8470. [return to top]

Builders Submit Testimony in Support of Workforce Development
The Senate Health, Education, Labor and Pensions (HELP) Committee held a hearing last week on how high demand industries are preparing for workforce training needs over the next decade. NAHB was asked to submit written testimony on behalf of the Home Builders Institute (HBI). NAHB noted the numerous training programs that HBI undertakes in cooperation with the federal government, primarily through the Department of Labor. These training programs include Job Corps, Project CRAFT, "Skills to Build America's Future" and "Building Today's Workforce for Tomorrow."

NAHB’s testimony focused on the need to enlist more skilled workers in the home building industry, and referenced data by the Bureau of Labor Statistics which shows that 18 million new homes will be constructed over the next decade, creating as many as 1 million job openings in the industry. The written statement also noted that the industry has enjoyed a successful and beneficial workforce training relationship with the federal government, and that HBI hopes to expand on this partnership by working with other departments and agencies, such as the Department of Education and the Department of Justice. For more information, contact Jenna Morgan Hamilton at x8470. [return to top]

Senate Panel Holds Confirmation Hearing on FHA Commissioner
The Senate Banking Committee last week held a confirmation hearing for Brian Montgomery to become the Assistant Secretary for Housing/Federal Housing Commissioner. NAHB sent a letter to the full committee in support of Montgomery's nomination. The panel will likely hold a vote on his confirmation later this month. For more information, contact Greg Brown at x8470. [return to top]