U.S. Senators urge Fannie, Freddie to aid lower-income households
WASHINGTON, Jan 24 (Reuters) - More than 30 Democrats in the U.S. Senate called on Friday for the regulator of government-controlled Fannie Mae and Freddie Mac to direct the companies to resume contributions for affordable housing initiatives.
The senators focused on two unused funds that Congress established in 2008 to finance low-income housing with a portion of Fannie Mae and Freddie Mac's revenue. The Federal Housing Finance Agency, the companies' regulator, suspended payments into the funds in November of that year, after the government seized the companies as mortgage losses mounted.
After suffering huge losses, the companies have turned the corner and are now seeing record profits. The 33 lawmakers, led by Democrats Jack Reed of Rhode Island and Elizabeth Warren of Massachusetts and independent Bernie Sanders of Vermont, want the agency to resume contributing to the fund to help ameliorate a shortage of affordable housing for low-income Americans.
"The time is long overdue to lift the current suspension of contributions, and we ask your full and fair consideration of our request," the letter to newly installed FHFA Director Mel Watt said.
If you are a FMCC holder this is good news. The best way to provide affordable housing is to have a mortgage backing government agencies. Do you think private banks will compete for providing affordable housing for lower income families? No! Too much risk unless the government is there to protect their hide. This is where FNMA and FMCC come into the picture. Make NO mistake, F&F are here to stay.
Oh, so they can get in the same mess they just got out of? We need to get rid of these Democrats once and for all while we still have a country. They are doing everything in their power to destroy what little we have left of the republic.
Dog49 The has changed we will not see another collapse like the 2008 in our lifetime, the banks learned their lesson buy paying penalties and F& F learned lesson of being aware of false applications. No chance of repeating the same mistake in near future. Bank Of America is now due to pay over $5 Billion, do they repeat their mistake of Countrywide? I don't think so.
They are addicted to the revenues generated with higher asset valuations (property taxes and income taxes), thus, they want to keep the economy hooked on the Feds Drugs ($$$) and run the people into the ground. The simple fact is that any Government structure in the US can handle a 25% decrease in revenues (annually) for a period of 4+ years without suffering complete collapse.
More than 30 Democrats in the U.S. Senate called on Friday for the regulator of government-controlled Fannie Mae and Freddie Mac to direct the companies to resume Initiatives Contributions for affordable housing.
The Dems are predictable---TAX and SPEND. They stole our money with the 2012 sweep rather than letting us pay back the loan at 10%. I agree with backing loans for folks the banks won't. I would like some rules, like "you can only borrow what you can afford to pay back" and "no adjustable interest". Reasonable points, closing, and interest, would be nice.