Kathianne
09-11-2019, 03:55 PM
Why does this seem like déjà vu? Good on them for noticing and admitting:
https://www.politico.com/story/2019/09/10/mortgage-finance-donald-trump-officials-1721529
FINANCE & TAX
This could 'end very badly': Trump officials warn on mortgage finance
By KATY O'DONNELL 09/10/2019 05:58 PM EDT
The U.S. housing finance system is worse off today than it was on the cusp of the 2008 financial crisis, Republican lawmakers and Trump administration officials warned on Tuesday.
Fannie Mae and Freddie Mac, the two government-controlled enterprises that stand behind half the country's mortgages, are way too undercapitalized, and lending standards have actually deteriorated since the housing crash, the officials said.
“This whole thing is a car wreck. It’s a dumpster fire,” Sen. John Kennedy (R-La.) said at a Senate Banking Committee hearing on the White House’s proposal to overhaul the way the nation finances mortgages.
“We spent $190 billion of taxpayer money, and we’re in worse shape,” he said, referring to the bailout of Fannie Mae and Freddie Mac, which were seized by Treasury a decade ago to stave off catastrophic losses in the crisis.
The hearing kicked off what promises to be a highly contentious debate over the plans released last week by the Departments of Treasury and Housing and Urban Development to scale back the federal government’s massive role in the mortgage market. Republicans are focusing on what they say are growing risks in the system, while Democrats are mostly concerned about providing affordable housing.
The Treasury blueprint would overhaul Fannie and Freddie before releasing them from government control. A major component of the plan is building the companies’ capital so they would be able to withstand an economic downturn without turning to taxpayers again.
...
https://www.politico.com/story/2019/09/10/mortgage-finance-donald-trump-officials-1721529
FINANCE & TAX
This could 'end very badly': Trump officials warn on mortgage finance
By KATY O'DONNELL 09/10/2019 05:58 PM EDT
The U.S. housing finance system is worse off today than it was on the cusp of the 2008 financial crisis, Republican lawmakers and Trump administration officials warned on Tuesday.
Fannie Mae and Freddie Mac, the two government-controlled enterprises that stand behind half the country's mortgages, are way too undercapitalized, and lending standards have actually deteriorated since the housing crash, the officials said.
“This whole thing is a car wreck. It’s a dumpster fire,” Sen. John Kennedy (R-La.) said at a Senate Banking Committee hearing on the White House’s proposal to overhaul the way the nation finances mortgages.
“We spent $190 billion of taxpayer money, and we’re in worse shape,” he said, referring to the bailout of Fannie Mae and Freddie Mac, which were seized by Treasury a decade ago to stave off catastrophic losses in the crisis.
The hearing kicked off what promises to be a highly contentious debate over the plans released last week by the Departments of Treasury and Housing and Urban Development to scale back the federal government’s massive role in the mortgage market. Republicans are focusing on what they say are growing risks in the system, while Democrats are mostly concerned about providing affordable housing.
The Treasury blueprint would overhaul Fannie and Freddie before releasing them from government control. A major component of the plan is building the companies’ capital so they would be able to withstand an economic downturn without turning to taxpayers again.
...