CAGW Marks Fannie Mae and Freddie Mac’s 10-Year Anniversary Under Government Control

For Immediate Release
Contact: Curtis Kalin 202-467-5318

September 6, 2018
 

(Washington, D.C.) – Citizens Against Government Waste (CAGW) marked the 10-year anniversary of Fannie Mae and Freddie Mac being placed under government conservatorship by highlighting today’s House Financial Services Committee hearing, “A Failure to Act: How a Decade without GSE Reform Has Once Again Put Taxpayers at Risk.”

CAGW President Tom Schatz said in a statement: 

“Since being placed under conservatorship a decade ago, Fannie Mae and Freddie Mac have had to borrow more than $190 billion from taxpayers, including a $3.7 billion request on February 15, 2018.  The failure of Fannie and Freddie to implement critical reforms to their finances has allowed so-called temporary conservatorship to morph into a continuous taxpayer burden with no end in sight. 

“Instead of staying within their statutory boundaries in the secondary market, Fannie and Freddie continue to recklessly expand and unfairly compete in the private sector mortgage market.

“To make matters worse, the Federal Housing Finance Agency, tasked with acting as a taxpayer guardrail, has instead allowed Fannie and Freddie to pursue fiscally foolish expansions and out-of-control spending

“Today’s House Financial Services Committee hearing represents another opportunity to shine a light on this festering financial situation and present long-term solutions that would take taxpayers off the hook for $254 billion in future obligations and keep Fannie and Freddie from irresponsibly venturing beyond their core responsibilities.”

CAGW is the nation’s largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.

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