Fannie Mae-No Politics (FNMA)

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Yellen's question/answer about GSE reform in House Financial Services Committee .

http://www.forextv.com/forex-news-story/yellen-excerpt-housing-finance-system-still-has-systemic-risk

WASHINGTON (MNI) - The following is an MNI excerpt of Federal Reserve Chair
Janet Yellen's answer to a question on GSE reform Tuesday morning from the House
Financial Services Committee:

Representative Michael Capuano: Do you think that it is fair or wise or
equitable to keep any entity in a de facto bankruptcy state once they have paid
back their debt?

Yellen: I think with respect to GSEs, I think it is really very important
for Congress to put in place a new system to address GSE reform, I think we
still have a system that has systemic risk , that government funding remains
critical to the mortgage sector and I think to really get housing back on its
feet, it's important for Congress to put in place a new system and to explicitly
decide what the role of the government should be in helping the housing sector.

--MNI Washington Bureau