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.
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