MassHousing Executive Director Thomas R. Gleason testified today before the House Committee on Financial Services in Washington, D.C., advocating for reform of Fannie Mae, Freddie Mac, and other so-called GSEs, and urging Congress to make sure future GSEs commit themselves to supporting affordable housing.

Gleason told the Committee, chaired by U.S. Rep. Barney Frank, that GSEs need to "make a powerful commitment to affordable housing” and that Congress should "direct future GSEs to use the proven housing finance agency delivery system” to fulfill that commitment.

Gleason, who has a 32-year career in affordable housing finance, was selected by the National Council of State Housing Agencies (NCSHA) to represent the housing finance agencies from all 50 states, District of Columbia, New York City, Puerto Rico and the U.S. Virgin Islands.

The hearing included testimony from Shaun Donovan, Secretary of the Department of Housing and Urban Development as well as governmental, private and non-profit sector stakeholders in housing finance.

The Committee on Financial Services is exploring reforms to the housing market and mortgage finance system and specifically, functions performed by GSEs such as Fannie Mae, Freddie Mac and the Federal Home Loan Bank, which are essential to a robust market.

Gleason said the work of Chairman Frank’s committee is critical to determining the appropriate role for the secondary mortgage market in our country’s housing finance system.

"Unfortunately, Fannie Mae and Freddie Mac both made investments in subprime and nontraditional mortgages that contributed significantly to their financial woes," Gleason testified. "But this shouldn’t negate the sound affordable housing investments they made in housing finance agencies. These investments have performed exceedingly well."