New York Times - Five Years Ago
I thought all of you may be interested in the following article reported
in the New York Times five years ago. You won't hear this from the
liberal media ! It seems that the Bush administration proposed increased
oversight and regulation of Fannie and Freddie, but Democrats fought it.
Here's the article:
"The Bush administration today
recommended the most significant regulatory overhaul in the housing
finance industry since the savings and loan crisis a decade ago. Under
the plan, disclosed at a Congressional hearing today, a new agency would
be created within the Treasury Department to assume supervision of
Fannie Mae and Freddie Mac, the government-sponsored companies that are
the two largest players in the mortgage lending industry.
The new agency would have the
authority, which now rests with Congress, to set one of the two
capital-reserve requirements for the companies. It would exercise
authority over any new lines of business. And it would determine whether
the two are adequately managing the risks of their ballooning
Democrats pushed back. "Among the
groups denouncing the proposal today were the National Association of
Home Builders and Congressional Democrats who fear that tighter
regulation of the companies could sharply reduce their commitment to
financing low-income and affordable housing".
"These two entities, Fannie Mae and
Freddie Mac, are not facing any kind of financial crisis", said Barney
Frank of Massachusetts, the ranking Democrat on the Financial Services
Committee. "The more people exaggerate these problems, the more pressure
there is on these companies, the less we will see in terms of affordable
Representative Melvin L. Watt,
Democrat of North Carolina, agreed. "I don't see much other than a shell
game going on here, moving something from one agency to another and in
the process weakening the bargaining power of poorer families and their
ability to get affordable housing," Mr. Watt said.
Please forward this to all on your
list - and especially Independents and Democrats !!!