Fannie Mae-No Politics (FNMA)

[10bambam]

Rep. Mick Mulvaney
20 hrs ·

An update from Washington: Yesterday, I introduced a bill that would effectively end the possibility of any future taxpayer bailouts of Government Sponsored Enterprises (GSE’s) Fannie Mae and Freddie Mac. During the 2008 housing crisis, Fannie and Freddie had to borrow a bunch of money from the U.S. Treasury to stay afloat – or as most people remember, a taxpayer bailout from people like you. Since then, Fannie and Freddie have paid back all the money borrowed and then some. Fannie and Freddie do not keep their profits in a reserve fund. They instead give ALL OF THEIR PROFITS to the U.S. Treasury, thus giving Congress yet more money to spend – as if Washington needs more money to dole out. This bill would change that. Instead of Fannie and Freddie continuing to send their profits to the Treasury, this bill requires them to keep their own profits in a sort of cushion fund that they can access in the event there is another housing crisis. The cushion fund will be twice the size of the money needed during the 2008 meltdown. In short, this bill will protect taxpayers from having to bail out these government agencies ever again. The bill is actually getting a lot of attention. I’ll keep you up to date on its progress.


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