Fannie Mae-No Politics (FNMA)

[ada]

Response from Senator Menendez
Doesn't say much but he is aware that they are profitable

Dear Mr. ADA:

Thank you for contacting me to express your opinions about the future of the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. Your opinion is very important to me and I appreciate the opportunity to respond to you on this critical issue.

As you are aware, in September 2008, both Fannie Mae and Freddie Mac were placed into conservatorship under the direction of the Federal Housing Finance Agency (FHFA) due to their rapidly deteriorating financial condition. The purpose of FHFA's conservatorship is to preserve the assets of both GSEs and to restore their financial health to a sound condition.

Of late, both Fannie Mae and Freddie Mac have become significantly more profitable. In the second quarter of 2013, Freddie Mac reported $5 billion in profit, its second-largest quarter ever.[1] As of August 2013, Freddie Mac had repaid $41 billion of the $71 billion received from the Treasury. Fannie Mae reported profits of $10.1 billion in the second quarter of 2013.[2] As of August 2013, Fannie Mae had returned $105 billion of the $116 billion it received from the Treasury.

Given the importance of the housing market and housing finance system to our economy, it is important that we carefully consider how best to address the future of these two companies. On August 7, 2013, President Barack Obama gave a speech[3] outlining his vision for a reduced role for Fannie Mae and Freddie Mac in the housing market. In addition to including a strong role for private capital in the housing finance system, reform efforts must maintain and improve access to affordable housing for all Americans, promote stability and transparency, and eliminate structures where private investors have incentive to take large risks and keep the profits while sticking the public with the downside.

As a member of the United States Senate Banking Committee, please know that I am closely monitoring housing finance reform proposals, including those that address the roles of Fannie Mae and Freddie Mac going forward.

Again, thank you for sharing your thoughts with me. Please do not hesitate to contact me once again if I can be of further assistance. I invite you to visit my website (http://menendez.senate.gov) to learn more about how I am standing up for New Jersey families in the United States Senate

https://outreach.senate.gov/iqextranet/iqClickTrk.aspx?&cid=quorum_menendez-iq&crop=15519.16647219.7841362.7601069&redirect=http%3a%2f%2fmenendez.senate.gov