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23 » VISIT US ONLINE @ DSNEWS.COM Congressman Randy Neugebauer has represented the 19th district of Texas in the United States House of Representatives since 2003. He currently serves on the Financial Services Committee, where he is Chairman of the Financial Institutions and Consumer Credit Subcommittee. In this role, he has oversight responsibility for U.S. banks and the banking industry, credit unions, depository institutions and federal deposit insurance, consumer credit, and financial regulators including the Federal Deposit Insurance Corporation and the Federal Reserve. In what ways did your background in real estate prepare you for your current role as Chairman of the House Financial Services Subcommittee on Financial Institutions and Consumer Credit? Prior to coming to Congress, I had a long career as a businessman in the private sector where most of my work centered on real estate and housing finance. I graduated from Texas Tech University with a degree in account- ing and then went to work as a banker in my hometown of Lubbock, Texas. At the bank, I originated and sold mortgages and worked with many in the real estate industry. I then became a small business owner focusing on residential construction and real estate development. My interest in public policy grew as I served as President of the West Texas Home Builders and the Texas Association of Builders. In Congress and through my service on the House Financial Services Committee, I have used my under- standing and experience of the business model to advocate for pragmatic policies that help grow the economy. In the previous Congress, I was Chairman of the Housing and Insurance Subcommittee. In this new Congress, I am now the Chairman of the Financial Institu- tions and Consumer Credit Subcommittee. We cannot grow our economy from Washington. e economic motor of America is the private sector, particularly our Main Street institutions. Real estate and housing play a pivotal role in the American economy and these issues will continue to be a large focus of the Committee. Much of the talk lately has been around just how far the housing industry has come in the last seven years since the bust. How would you rate its overall progress? e housing industry was in a really bad place right after the financial crisis. e de- struction caused by the GSEs left $16 trillion in wealth destruction, which shattered dreams of early retirement for millions; countless boom and bust cycles that have wreaked havoc on the emotions of the American people; nearly $200 billion of taxpayer funded bailouts that plunged our nation further into debt; and the financial wipe-out of responsible middle-class homeown- ers. Fast forward to today, and I think the hous- ing market is improving, but unfortunately we still haven't created a sustainable, long term so- lution. Fannie Mae and Freddie Mac are still in conservatorship, which exposes taxpayers in the event of another housing downturn. Further, government housing programs have created an artificial market in which the private sector can't compete. If we could create more competi- tion and a robust secondary market, I believe we would see a stronger housing recovery. You've been a vocal critic of many of the steps that the Obama Administration has taken to solidify the housing recovery. In your opinion, what should responsible housing policy look like? First and foremost, we must address comprehensive housing finance reform. e one significant piece of financial reform that was ignored during the crisis is perhaps the most important. Any future housing finance system must have limited public policy levers that are often used to pressure private compa- nies through false incentives. Additionally, we must foster a robust private secondary mortgage market. is can only be achieved if we remove artificial government pricing advantages and subsidies. Americans deserve a better housing finance policy model focused on long term sus- tainability. Sustainable for homeowners so they can keep their homes; sustainable for taxpayers so they are never again asked to foot the bill for a multibillion dollar Washington bailout; and sustainable for our nation's economy so we avoid the boom-and-bust cycles that have hurt so many in the past. Do you think FHFA allowing the GSEs to guarantee loans with three percent down payments is the correct move? No. Data shows Fannie Mae and Freddie Mac are already significantly underpricing risk on loans they guarantee. at is troubling in light of their current conservatorship status, which includes little capital buffers. While encouraging homeownership is a worthwhile policy objective, we must do it in a safe and sound manner. I am disappointed that the entity charged with regulating Fannie Mae and Freddie Mac is actually part of the problem. FHFA has essentially created a scenario where they are competing with FHA to see who can create more risk in the system. Your party has further entrenched itself as the Majority in the House of Representatives and now has control of the Senate. What are your hopes for this new Congress? e American people sent a clear message to Washington: they are tired of the status quo and they want to see things get done. I agree. It is my hope that this new Congress makes pro- growth economic policy a top priority to help get the American people back to work in good- paying jobs. I believe regulatory relief must be part of the equation. In 2010, Congress passed Dodd-Frank, which has been one of the most disruptive pieces of legislation we have seen in a long time. Instead of solving many of the causes of the financial crisis, we created a new regulatory framework that that has made regulators less transparent and less accountable to the Ameri- can public. ousands of pages of new and complex regulations have been added without adequately addressing the underlying problem. One example is Congress' failure to address the problem of Too Big To Fail. Instead, Dodd- Frank further entrenched ad hoc government in- tervention and subjective regulatory authorities. Perhaps my biggest goal for this Congress is to reduce some of the burdens facing our Main Street financial institutions and the everyday American. Main Street financial institutions continue to see high consolidation as a result of regulatory burdens. Consumers are faced with purported consumer protections that are actu- ally decreasing consumer choice, increasing the cost of credit, and making it harder for many Americans to ever obtain credit. I am hopeful there is enough bipartisan consensus to begin to address some commonsense Dodd-Frank reforms, especially for our Main Street bankers and the American consumer.

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