Posted by Rep. Ed Royce at 7:18 am on Jan 23, 2014 Comments Off on Pay Back the Taxpayers, Not ACORN
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In 2008, at the start of the financial crisis, the American
taxpayers bailed out Fannie Mae and Freddie Mac to the tune of $188
billion. They have yet to repay that money; in fact, the number is
expected to grow to over $200 billion by 2015. But as the housing
market has begun to recover, so too have Fannie and Freddie’s
profits. At the first sign of money rolling-in, housing advocates
are again pressuring the Federal Housing Finance Agency (FHFA) to
get a piece of the taxpayer-funded pie.
Specifically, these groups are looking to turn on the spigot of
the national Housing Trust Fund, a program created to divert funds
from Fannie and Freddie to groups promoting low-income housing and
homeownership. Since being placed under federal supervision, or
conservatorship, Fannie and Freddie’s profits have been directed
back to the U.S. Treasury. As the federal regulator overseeing
Fannie Mae and Freddie Mac, the FHFA gets to make the decision if
or when money should be put in the Housing Trust Fund instead of
paying back the billions they owe. If I were in charge, all of the
money would flow to paying down our debt, but the newly selected
head of the FHFA, former Democratic… Read More