Monday, July 29, 2013

Sen. Kay Hagan Wants to Replace Fannie and Freddie with Another Government Agency



When I read that Senator Kay Hagan wanted to rid the country of GSE’s Fannie Mae and Freddie Mac, I couldn’t believe it.  A Democrat wants to abolish a quasi-government agency?  This is practically unheard of.  Here is a quote from the Charlotte Business Journal:

“For too long, Congress has ignored our broken housing finance system,” Hagan said in a statement Tuesday. “It is time we come together, Democrats and Republicans, to resolve this problem. This bipartisan bill provides an important road map for strengthening our housing finance system and protecting taxpayers while ensuring access to affordable, long-term mortgages for consumers.

“I look forward to working with my colleagues to advance this bipartisan legislation that will put our housing finance system on a stable path.”

And

“Fannie Mae and Freddie Mac continue to dominate the housing market — guaranteeing nine out of every 10 mortgages made today,” Hagan's office says in a press release. “Despite this unsustainable situation, real reform to the housing finance has not happened since the financial crisis.”

Incredible!  Finally, Senator Kay Hagan has opened her eyes and sees the light.  But then came the caveat:

The bill would replace Fannie and Freddie with a new government agency, funded by the financial industry, that would offer insurance on approved home loans.

Currently, Fannie and Freddie are in government conservatorship after they faltered in the housing collapse of 2008. They have received more than $188 billion in taxpayer aid, which is being repaid from profits as the housing market rebounds.

So Senator Hagan wants to create another government agency that will end up being corrupted just like Fannie Mae and Freddie Mac.  Unbelievable!  Something must be in the D.C. water.


No comments: