The Capital Markets and Government Sponsored Enterprises Subcommittee today approved eight bills that would fundamentally reform Fannie Mae and Freddie Mac. The bills, introduced in late March, would restrict compensation for Fannie Mae and Freddie Mac executives, eliminate affordable housing goals, increase guarantee fees and prohibit new activities. It is the first reform action taken by Congress since the Fannie and Freddie bailouts in 2008.
Now that the eight bills have been approved by the GSE subcommittee, they will be sent to the Financial Services Committee for consideration.
“The passage of these eight bills represents an important milestone in our ongoing effort to end the bailout of Fannie Mae and Freddie Mac, protect taxpayers from further losses and level the playing field so that the private sector can reenter the marketplace,” said Subcommittee Chairman Scott Garrett. “I appreciate all of the effort my colleagues put into these bills and I look forward to working closely with them as we advance them through the full committee and then to the House floor.”
“It was 31 months ago that Fannie Mae and Freddie Mac were bailed out by the taxpayers, and for far too long Congress has refused to do anything about it,” said Financial Services Committee Chairman Spencer Bachus. “The Subcommittee today acted to protect taxpayers from the unlimited bailout of Fannie Mae and Freddie Mac. This is the beginning of our efforts to get Fannie and Freddie off the backs of taxpayers, build a stronger housing finance system, and eliminate government guarantees in the mortgage market.”
Since the bailouts in 2008, Fannie and Freddie have received $150 billion in taxpayer support.
See the eight bills.
Written by Elizabeth Ecker