Statement by Chairman Barney Frank
Today, Financial Services Committee Chairman Barney Frank (D-MA) released the following statement:
“After recent hearings on the future of housing finance, two important points have emerged from those examinations. First, the major losses of Fannie and Freddie come from their pre-conservatorship activities, which were not curtailed by a Republican Congress that promoted homeownership at all costs. In fact, the federal government would have no further losses on their post-conservatorship activities. Secondly, every witness involved in the housing arena - from the lenders to the builders, sellers, and advocates - has said that it would be a mistake simply to abolish them without putting something in their place. Moreover, these major players in the housing industry agree that there could be considerable harm done to the overall economy if we did.
“As seen during our hearings, a consensus is emerging that there needs to be a replacement established before they are abolished, and this replacement needs to be limited in scope, regulated, and have a much larger role for the private sector. The Financial Services Committee will hold further hearings to examine the unwinding and abolition of these enterprises and the future of housing finance.”