Even though housing markets showed some signs of improvement, Congress continued to grapple with multiple issues related to the aftermath of the recent turmoil in housing and mortgage markets. These issues included considering large-scale reforms to the housing finance system and overseeing the implementation of new rules related to mortgage lending that were enacted in response to issues that were perceived to have contributed to the housing market collapse. Furthermore, in response to concerns about the long-term budget outlook, Congress has been providing less funding for many domestic discretionary programs, including housing programs primarily administered by the Department of Housing and Urban Development (HUD). In this light, the 113 th Congress considered issues such as how to prioritize funding for housing assistance programs in an environment of fiscal austerity, as well as possible reforms to certain housing assistance programs. These issues are broadly divided into two categories: issues related to homeownership and housing finance, and issues related to housing assistance for low-income households. Several new federal regulations related to mortgage lending that were mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act, P.L. Mortgage Market Composition

The mortgage market in recent years has largely consisted of mortgages insured by government agencies, such as the Federal Housing Administration (FHA), or purchased by Fannie Mae and Freddie Mac, two government-sponsored enterprises (GSEs) that are currently under government control. Issues Related to Housing Finance and Homeownership

A number of the housing issues that were on the agenda of the 113 th Congress had to do with housing finance or homeownership. One major issue that Congress considered was the possible large-scale reform of the housing finance system. In the House, the PATH Act proposed to wind down Fannie Mae and Freddie Mac over several years. Tax Exclusion for Canceled Mortgage Debt Income

A home foreclosure, mortgage default, or mortgage modification can have important tax consequences. Issues Related to Housing for Low-Income Individuals and Families

The 113 th Congress also deliberated on a number of issues related to housing assistance programs and policies. Several issues that were considered by Congress were related to funding for housing assistance programs and possible reforms to certain programs. No reform legislation was considered in the 113 th Congress. No reauthorization bill was enacted before the end of the 113 th Congress. Low-Income Housing Tax Credit

The low-income housing tax credit (LIHTC) program is one of the federal government's primary policy tools for encouraging the development and rehabilitation of affordable rental housing. That lawsuit was dismissed due to lack of standing in September 2014.
The 113th Congress was active in considering a number of housing-related issues. In general, these issues can be divided into two broad categories: (1) issues related to homeownership and financing home purchases, and (2) issues related to housing assistance programs for low-income households. Housing assistance for low-income households tends to be primarily, but not exclusively, related to rental housing.
During the 113th Congress, housing and mortgage markets showed some signs of recovering after several years of distress. Nevertheless, several issues that Congress considered were related to addressing problems that arose from the turmoil in housing and mortgage markets in recent years. Congress also considered policy changes designed to address problems that were perceived to have contributed to the housing downturn in an attempt to avoid a similar situation in the future.
One major issue that was on Congress's agenda was reform of the housing finance system. Specifically, Congress considered measures to wind down and possibly replace Fannie Mae and Freddie Mac, two government-sponsored enterprises (GSEs) that purchase mortgages and package them into guaranteed mortgage-backed securities. Congress also considered reforms to the Federal Housing Administration (FHA), both as part of larger housing finance reform proposals and as stand-alone measures, in light of concerns about FHA's finances. However, no housing finance reform legislation or broad FHA reform legislation was enacted during the 113th Congress. Additionally, Congress was interested in overseeing the implementation of several mortgage-related rulemakings that were enacted as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203) in the 111th Congress, and deliberated on other issues related to housing finance.
Congress also considered a number of issues related to housing assistance for low-income individuals and families. In recent years, housing affordability issues have become more prevalent, partly due to the effects of the economic recession. At the same time, in response to growing concerns about the long-term budget outlook, less funding has been provided for many of the housing assistance programs administered by the Department of Housing and Urban Development (HUD). Therefore, an issue before the 113th Congress was how to prioritize funding for housing programs. Congress also considered additional issues related to housing for low-income families, including extensions of certain provisions related to the low-income housing tax credit (LIHTC) program and efforts to reauthorize the major federal program that provides federal housing assistance to low-income Native Americans living in tribal areas.
Congress also weighed whether to extend certain housing-related tax provisions that expired at the end of 2013, such as the tax exclusion for canceled mortgage debt income.