Republicans touted the measure as a viable solution to revamping the mostly government-controlled mortgage finance market and said it would better protect taxpayers by dramatically reducing the government's role and spurring participation from private lenders.

Rep. Scott Garrett Ernest (Scott) Scott GarrettBiz groups take victory lap on Ex-Im Bank Export-Import Bank back to full strength after Senate confirmations Manufacturers support Reed to helm Ex-Im Bank MORE (R-N.J.), a chief sponsor of the bill, said repeatedly on Tuesday that the bill does not end the government guarantee, which will be maintained by the Federal Housing Administration (FHA). Garrett said the FHA would be overhauled to better target low- and moderate-income borrowers and, along with other government entities, would account for about 20 percent of the market.

Still, despite the assurances, Democrats offered several amendments designed to maintain the 30-year fixed-rate mortgage, which they argue would become largely extinct under the bill because it would make the product inaccessible or unaffordable to a majority of borrowers.

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Some economists and industry stakeholders have expressed similar concerns with the bill.

Democrats said they backed a bipartisan Senate measure — led by Sens. Mark Warner Mark Robert WarnerIntelligence chief says Congress will get some in-person election security briefings Overnight Defense: Trump hosts Israel, UAE, Bahrain for historic signing l Air Force reveals it secretly built and flew new fighter jet l Coronavirus creates delay in Pentagon research for alternative to 'forever chemicals' House approves bill to secure internet-connected federal devices against cyber threats MORE (D-Va.) and Bob Corker Robert (Bob) Phillips CorkerHas Congress captured Russia policy? Tennessee primary battle turns nasty for Republicans Cheney clashes with Trump MORE (R-Tenn.) — that leaves the government guarantee in place across a broader part of the market.

The Republican measure has gotten some industry support, especially on the bill's delay of qualified mortgage rules that are set to go into effect in January and are required under the three-year-old Dodd-Frank financial reform law.

The hearing underscored the complexity of the issue. In order for legislation to get through Congress, lawmakers will have to choose from a slew of ideas from both parties and players in the housing industry.

