Today Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, delivered the following statement during a Housing and Insurance subcommittee hearing entitled, “Diversifying Risk: Benefits of Reinsurance and Credit Risk Transfers.” 

Mr. Chair, credit risk transfers, or CRT’s, can offer benefits to our housing finance system. They can provide insight about market perceptions of the default risk of the housing portfolios of Fannie Mae and Freddie Mac, and may allow private capital to help absorb losses.  

But to be clear, CRTs will never replace the role of the federal government in housing finance.  

In order to address the affordable housing crisis, Congress must ensure that Fannie and Freddie meet their mission to provide liquidity, sustainability, and affordability to all housing markets in the U.S., and at all times.  

That is why this Committee should consider every tool available to increase access to affordable housing, including ways to leverage CRT’s and other forms of reinsurance when it makes sense.  

I yield back.