Hill Responds to Fannie Mae and Freddie Mac Bailout Request
Congressman French Hill, Majority Whip of the House Financial Services Committee, issued the following statement, criticizing Fannie Mae’s and Freddie Mac’s request for a $4 billion bailout from the U.S. Department of the Treasury, and calling for Federal Housing Finance Agency (FHFA) Director Mel Watt to suspend payments to the Housing Trust Fund.
“As a taxpayer in this country, I am deeply troubled by the recent multi-billion-dollar bailout request by our largest government-sponsored enterprises, Fannie Mae and Freddie Mac. We, the taxpayers, through the Treasury Department, still back the GSEs with a line of credit standing at over $250 billion. It’s ludicrous that at the same time he is requesting a multi-billion-dollar bailout, FHFA Director Mel Watt continues to direct taxpayer dollars into the Housing Trust Fund. This is unacceptable, and I urge my colleagues to support my bill, H.R. 4560, the GSE Jumpstart Reauthorization Act, because rather than increasing taxpayer exposure by withholding money, it is time to mandate that the GSEs pay their bills to taxpayers before growing this Trust Fund.”
“I encourage Director Watt to meet with the House Financial Services Committee Chairman Jeb Hensarling and Senate Banking Committee Chairman Mike Crapo to come to an agreement on the architecture of successful secondary market reforms that facilitate housing markets and operates in a safe and sound manner for taxpayers.”