Fannie Mae (FNMA)

[Cubshawk]

Bill to stop funding housing trust fund -


It appears the anti-GSE folks in Congress are using that bill as a way to force the GSE's to make full net worth sweep payments. They're against the housing trust fund - I assume because it interferes with their divided sweeps and wind-down of the GSE's. And thus, the bill introduced today is just a convenient way for them to extort full payment from the GSE's and is in no way something good for us.

Previous article pertaining to funding the trust fund:

However, some lawmakers tried to stop the lifting of the suspension of the NHTF, including House Financial Services Committee Chairman Jeb Hensarling (R-TX). He responded to the announcement of the first contribution saying that the GSEs were at the center of the financial crisis and that “diverting assets from taxpayers to housing trust funds re-invites the same politically directed lending abuses” and could lead to the next crisis.

http://www.nmhc.org/News/Fannie-Freddie-Contribute-$186M-to-Housing-Trust-Fund/