Hoyer: No Plans Yet by Democrats To End Fannie, Freddie Bailouts

May 19, 2010 05:39


Fannie and Freddie together own or guarantee $5.5 trillion worth of home mortgage loans – about half of all mortgages – and have been costing the taxpayers approximately $7 billion per month to keep afloat, after first being bailed out in September 2008.

By Matt Cover at CNSNews.com


House Majority Leader Steny Hoyer (D-Md.) could not say what action Democrats are planning to end the federal bailouts of Fannie Mae and Freddie Mac or when his party planned to take action.

Hoyer, speaking to reporters on Tuesday at his weekly press briefing, said only that the House Financial Services Committee was “looking at” what to do with the failed mortgage giants that played a central role in the 2008 economic crisis.

“The committee is looking at that,” said Hoyer.  “It is going to be considering it. I can’t tell you when specifically, but clearly the committee needs to deal with the issue of Fannie and Freddie and they will be doing it.”

Fannie and Freddie together own or guarantee $5.5 trillion worth of home mortgage loans – about half of all mortgages – and have been costing the taxpayers approximately $7 billion per month to keep afloat, after first being bailed out in September 2008.

So far, Fannie and Freddie have cost taxpayers $145 billion and have both reported that they will never be profitable again because the mortgages they bought and sold to investors are so poor that they will never make money on them, and will therefore require bailouts into the “indefinite future.”

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