Rep. Barney Frank (D-MA), Chairman of the House Financial Services Committee, and Congressman Paul E. Kanjorski (D-PA), Chairman of the Subcommittee on Capital Markets, Insurance, and Government-Sponsored Enterprises have released letters to the White House calling for the Federal Housing Finance Administration (FHFA) to use all of its powers to recover money from companies that used fraud and deceptive practices to shift losses on to Fannie Mae and Freddie Mac.
This issue will be a major focus at an oversight hearing on FHFA held by the Capital Markets Subcommittee next month. The House Financial Services Committee and Capital Markets Subcommittee have held five hearings on housing finance in 2010, and the FHFA oversight hearing is one of two new hearings on the topic planned for September.
“This week, the debate on the future structure of the U.S. housing finance system advanced greatly during the conference at the Treasury Department,” said Rep. Kanjorski, “In winding down Fannie Mae and Freddie Mac, we must carefully craft a solution that stabilizes our mortgage markets and ensures the continued availability of reasonably priced loans and affordable housing opportunities for all Americans. Simultaneously, FHFA must continue its efforts to protect taxpayers by recouping funds from the underwriters of faulty mortgages and the issuers of underwater securities purchased by Fannie Mae and Freddie Mac.”
On Aug. 13, Rep. Kanjorski and committee members Brad Miller (D-NC) and Jackie Speier (D-CA) addressed a letter to President Obama asking that any new Director of the FHFA aggressively pursue claims on behalf of Fannie Mae and Freddie Mac.
“We must pursue legitimate legal claims to limit losses to taxpayers,” Rep. Brad Miller (D-NC) said. “Americans need to know that their government is acting on their behalf, not on behalf of powerful financial institutions.”
Rep. Frank has joined his colleagues by addressing a letter to the President strongly supporting his colleagues’ request.
Click here to view the letter from Rep. Frank to the White House.
For more information, visit http://financialservices.house.gov.