Bush Admin. Had a Plan To Create An Agency for Fannie Mae and Freddie Mac In 2003-Truth!

Bush Administration Proposed a New Agency to oversee Housing Industry in 2003-Truth!

Summary of eRumor:

An eRumor quoting a New York Times article from 2003 that claims “the Bush administration had recommended the most significant regulatory overhaul in the housing industry” in a decade,  A new agency would be created under the Department of the Treasury to assume supervision of Freddie Mac and Fannie Mae.  The concept was met with opposition by the Congressional Democrats because at the time the lending agencies were not facing any kind of financial crisis.

The Truth:

Stephen Labaton wrote this story for the New York Times and it was published September 11, 2003 and it is still archived at the newspaper.

According to the article, the Bush administration introduced the plan and it was well recieved by Fannie Mae and its leading rivals.  It was criticized by the Democrats in Congress and National Association of Home Builders who feared “that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.” 

Congressman Barney Frank stated that they two major lenders were not facing any financial crisis at the time.

CLICK for full story from New York Times

updated 09/25/08