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Housing reform: 2015 be the year of GSE reform? - After initial movement on bi-partisan legislation last year, this is a dead effort as indicated by Banking Committee member and advocate for GSE reform, Senator Bob Corker (R-TN): “Congress will ignore GSE overhaul for next 16 months.” - Meanwhile, the housing market is moving on a number of fronts (we’ve seen this horror movie before): v _ Fannie Mae launched their “HomeReady Mortgage” program: You can (again) use the income from non-borrower household members. v¥ Freddie and Fannie are working on a common Securitization Platform. Just for them (for now) but will eventually allow other participants. Question as to whether this is a transition to something new or simply securing the monopoly/duopoly of the GSE's. Existing Home Sales (in millions) Existing Home Sales has increased 53.9% from its lowest level of 3.45 million in July 2010. ee * SPF SF oF 28 ee rn on a on a s oe > > > - oe ? os re we Source: Deutsche Bank Deutsche Bank Francis J. Kelly Global Public Affairs francis.j.kelly@db.com 7 HOUSE_OVERSIGHT_026801