Wells Fargo Co-President Mike Heid Testifies in D.C. on the Future of Housing

Mike Heid, co-president of Wells Fargo Home Mortgage, has testified before the House Financial Services Committee on “The Future of Housing Finance—A Review of Proposals to Address Market Structure and Transition.” In his capacity as chairman of the Housing Policy Council (HPC), Heid presented the HPC’s proposal for government-sponsored enterprise (GSE) reform. “In considering housing finance reform, we need to find a solution that works for every part of the housing market and is able to attract the necessary capital to provide affordable mortgage financing in the years to come,” Heid said. “The HPC has suggested an approach that will meet these basic objectives while capitalizing on the industry’s existing infrastructure. It involves creating strongly regulated, privately-capitalized competing conduits, a federal wrap guarantee on the mortgage backed security, a FDIC-like insurance fund, as well as adopting a common security. The Financial Services Roundtable represents 100 of the largest integrated financial services companies providing banking, insurance, and investment products and services to the American consumer. Member companies participate through the chief executive officer and other senior executives nominated by the CEO. Roundtable member companies provide fuel for America's economic engine, accounting directly for $74.6 trillion in managed assets, $1.1 trillion in revenue, and 2.4 million jobs. “It is our belief that this proposal will encourage private sector capital, ensure a steady flow of reasonably-priced conventional mortgages, limit the risks to taxpayers, and provide the flow of funding to support affordable owner-occupied and rental housing,” Heid continued. A full transcript of Heid’s testimony can be found by clicking here. For more information, visit www.fsround.org.