Jump to content

Conservative analysts warn of growing Fannie and Freddie


Geee

Recommended Posts

2552748Washington Examiner:

Fannie Mae and Freddie Mac are set to grow, and that has conservative economists worried.

 

Both parties and both chambers of Congress agree in principle that the bailed-out government-sponsored mortgage enterprises need to be shut down and replaced with a new system of housing finance, to prevent the model of private profit at public expense that many blame for the companies' failure and bailout from taking hold again.

 

But the companies’ government overseer announced Friday that it was setting new, more expansive affordable housing goals for Fannie and Freddie, the latest in what right-of-center analysts see as in a series of decisions meant to increase the businesses' market impact, rather than eliminate it.

 

Sign Up for the Politics Today newsletter!

“I’m worried, I think that lawmakers will be worried,” said Andy Winkler, a researcher at the American Action Network. “I don’t know if that will push them to get housing finance reform done, but I think it should,” Winkler said.Scissors-32x32.png


Link to comment
Share on other sites

Sell Fannie and Freddie, don’t kill them

 

It’s time for the U.S. government to sell its ownership stake in Fannie Mae and Freddie Mac, the two giant mortgage funders, and let them sink or swim by themselves.

 

Bailed out by U.S. taxpayers six years ago, Fannie and Freddie are now spruced up, profitable and well-managed. Together, they will earn about $20 billion in profits this year. That’s more than General Electric.

 

On Aug. 7, the two mortgage giants announced they will pay another $5.6 billion — all of their second-quarter profits — to U.S. Treasury. That brings total bailout repayments for Fannie to $130 billion, or $14 billion more than it received in bailout money. Freddie has paid the Treasury $88 billion, or $17 billion more than it received.Scissors-32x32.png

http://www.washingtontimes.com/news/2014/sep/2/glassman-fannie-and-freddie-no-longer-invalids/

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • 1713243573
×
×
  • Create New...