How To Fix The Housing Market

  How To Fix The Housing Market

Business Wire

-- November 19, 2012

(NAPSW)—At the height of the financial crisis in 2008, the U.S. government
bailed out our nation’s banks and nationalized our home mortgage system.

While Fannie Mae and Freddie Mac continue to dominate the mortgage market,
taxpayers will remain at ...

While Fannie Mae and Freddie Mac continue to dominate the mortgage market,
taxpayers will remain at financial risk. (Photo: Business Wire)

Four years later, most of those bailouts have ended and taxpayers have been
repaid in full. Unfortunately, that is not the case for mortgage giants Fannie
Mae and Freddie Mac. Remarkably, they remain in government control, continue
to dominate the mortgage market, and still owe taxpayers over $140 billion.

Neither Congress nor the White House has a viable plan to get that money back
or to get the government out of housing finance. As a result, taxpayers—not
banks or investors—are now on the hook for trillions of dollars of mortgage
risk. And the government continues to add to that risk, accounting for over 90
percent of new mortgage credit today, double the amount it provided just a few
years ago. Even worse, recent actions in Washington threaten to make Fannie
Mae and Freddie Mac permanent wards of the state.

Moreover, millions of potential homeowners cannot get a mortgage because
private sources of housing credit are scarce. Many of those private sources
cannot compete with the government.

Your elected representatives in Washington aren’t paying attention to this
problem!

But there is a plan to fix it. Former officials from the Obama and Bush
administrations, Jim Millstein and Phillip Swagel, have crafted a way to
restart private housing markets, ensure access to affordable 30-year
mortgages, protect taxpayers from future bailouts, and repay them for saving
the two largest sources of housing finance in our country: Fannie Mae and
Freddie Mac. Millstein and Swagel discussed their plan in their recent article
for The Washington Post.

Call your representatives in Congress. Let them know that we need to end the
last bailout and the nationalization of our home mortgage system. Go to
www.whoismyrepresentative.com to tell them that you support housing finance
reform.

Under a new proposal to restructure the housing market, the mortgage guarantee
businesses would be privatized.

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Multimedia
Available:http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50482613&lang=en

Contact:

Xenophone Strategies
Matt Meenan, 202-777-2040
mmeenan@xenophonestrategies.com
 
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