Comment Detail

Comment

It is time for FHFA to fulfill their statutory mandate under HERA to “put the regulated entity in a sound and solvent condition… and preserve and conserve the assets and property of the regulated entity”. I look to Director Watt to use his authority to end the sweep so that Fannie Mae and Freddie Mac can recapitalize and be released from this parasitic "conservatorship" which allows the treasury to illegally and irresponsibly drain all the capital of these privately held corporations.

In 2008, the government-sponsored entities were reeling from a financial crises precipitated by big Wall Street firms like Goldman Sachs, Bank of America and JP Morgan Chase, which sold fraudulently rated sub-prime mortgages to the GSEs and private investors. The GSEs were placed in conservatorship and given a loan from the Treasury to help them recover. They have since paid back every dollar borrowed plus interest. They have literally paid their debt to society. It is now time to release the GSEs from conservatorship.

Since the Great Depression, Fannie Mae has helped raise the standard of living in this country. By providing liquidity in the housing market and by promoting 30-year fixed-interest mortgages, Fannie Mae (and her younger cousin Freddie Mac) have enabled millions of Americans to obtain mortgages and purchase homes. This is one of the best ways for the average American to save money and build a secure future.

The middle class in this country is under attack. Wall Street has emerged from the 2008 recession (which it caused) stronger than ever; but main-street America is suffering. Debt is up and wages are down (that is if you are lucky enough to have a job). Now is not the time to “wind down” the GSEs. Now is the time to release the GSEs from conservatorship and allow them to help revitalize the middle class by once again making home ownership an affordable dream. A healthy housing market fuels the economy and a healthy middle class will benefit all Americans.