Today, Government Sponsored Enterprise (GSE)
"I am pleased with today's announcement that the GSEs will repay the taxpayer in full. In 2008, as the economy was reeling out of control, Democrats worked with a
The GSEs return to profitability is a welcome sign for our economy, housing market and for the American taxpayers.
The conservatorship of Fannie and Freddie has led to robust discussion about reform of the government-sponsored enterprises. Several proposals have already advanced this conversation.
Next week, I will be discussing a proposal with Democratic members of the Financial Services Committee to reform the GSEs, which takes into consideration the changes in the marketplace since the crisis. This proposal will preserve the affordable 30-year, fixed rate mortgage and provide an explicit government guarantee that is paid for by industry. The proposal will also end the perverse incentives created by
What it will not do is undercut our housing market, our middle class and our economic recovery, as the House Republican plan does. The PATH Act's irresponsible plan jeopardizes the availability of understandable mortgages like the 30-year fixed rate, severely limits FHA-backed mortgages and significantly harms community banks and credit unions by favoring the mega-banks. It would also repeal the protections against predatory lending in the Dodd-Frank law, inviting unscrupulous subprime lenders back into the market.
I look forward to further discussion of these issues."
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