"As I recall...Much of the debt of Fannie and Freddie was from the bad mortgages they took over from the big banks because they had the federal guarantee. The big banks had nothing to lose - just give it up to Fannie and Freddie. I'm not sure this accomplishes anything at all, frankly. "
...they dumped it on those organizations and their status as private entities made the bailouts significant. They are still private.
The FHFA will have a big hand in the new structure, and this is why confirming Mel Watt is important.
Progressive Caucus Applauds the Nomination of Rep. Mel Watt to Head the Federal Housing Finance Agency
Washington, D.C. – Congressional Progressive Caucus Co-Chairs Reps. Raúl M. Grijalva (D-AZ) and Keith Ellison (D-MN) released the following statement today after President Obama nominated Rep. Mel Watt (D-NC) to head the Federal Housing Finance Agency (FHFA):
“The president’s nomination of Rep. Mel Watt to head the FHFA should provide hope to millions of Americans struggling to stay in their homes. Rep. Watt has advocated common-sense policies to help homeowners and stop the foreclosure crisis hurting our recovery. He’s a consistent and passionate defender of homeowners and working families, and he’s the right person for the job.
“The housing market lost half its value during the recession. Ten million Americans still owe more on their mortgage than their home is worth. On Edward DeMarco’s watch, the FHFA has refused to provide relief by either cost-effectively reducing the principal on underwater homes or funding the National Housing Trust Fund. He has chosen to leave homeowners behind.
“We encourage our colleagues in the Senate to confirm Rep. Watt as head of the FHFA as soon as possible. If Senate Republicans choose to filibuster his nomination, as they have with several recent qualified nominees, the president should appoint him during a congressional recess. We need a true champion of working Americans on the job immediately.”
http://cpc.grijalva.house.gov/index.cfm?sectionid=61&itemid=708
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