The House Financial Services Committee approved the Federal Housing Finance Reform Act of 2007 (H.R. 1427) by a vote of 45 to 19 on March 29. The legislation, which will now be taken up by the full House, will overhaul the regulatory oversight of government sponsored enterprises (GSEs) Fannie Mae, Freddie Mac, and Federal Home Loan Banks and create an independent regulator.

Importantly, the bill provides for an affordable housing fund which would dedicate approximately $500 million a year (funds from the first year would be directed to the Gulf Coast) to the construction, maintenance, and preservation of affordable housing. During the markup, Financial Services Chairman Barney Frank (D-MA) offered an amendment, which passed with a strong majority, that would lay the groundwork for using these funds to create a National Housing Trust Fund.