Privatization of Fannie & Freddie Dangerous & Reckless Without Adequate Oversight of Wall Street

 

“If the goal is to reduce risk to the financial system, and to the taxpayer, then why would you migrate the effective management of the housing market to Wall Street? Why let the very industry that ruined the housing market take control of it? Unbridled greed and lack of regulatory oversight caused the housing crisis, not government housing programs. The GSEs followed Wall Street into the sub-prime abyss, not the other way around.

“If Congress or the Administration decide to eliminate the GSEs, then Wall Street and the private market must have an obligation to provide affordable housing, or we’ll see a radical reduction in the number of working class and blue collar people who can own homes.”

“Fannie and Freddie are saddled with billions of dollars of debt, which is not going to disappear miraculously. Phasing Fannie and Freddie out over a long period of time is a more sensible approach, and would allow a greater reduction of their debt, returning the taxpayer investment. To do so, stronger oversight and financial safeguards need to be put in place. Writing down loans held by the GSEs so that they perform could benefit the taxpayer, while preventing millions of foreclosures and the loss of a home for these families.”

 

About the National Community Reinvestment Coalition (NCRC):
The National Community Reinvestment Coalition is an association of more than 600 community-based organizations that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development, and vibrant communities for America’s working families.

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