Since 2012, the Treasury has been sweeping the quarterly profits of Fannie Mae and Freddie Mac. This has left the two Government Sponsored Enterprises (GSEs) with little capital to cushion against potential losses related to their mortgage portfolios. Today, Freddie Mac reported a small quarterly loss.
In response to the news, National Taxpayers Union’s (NTU) Clark Packard observed, “The small loss reported today by Freddie Mac only serves to accentuate the outrageously reckless nature of the administration’s continued Net Worth Sweep of the GSEs. Allowing two of the nation’s largest financial institutions to continue operating on a direct line of credit from the taxpayer, while simultaneously stripping of them of their protection against losses, is the height of fiscal policy gone awry. We urge members of Congress to support Marsha Blackburn’s HR 1673, which is an existing vehicle to end this practice and protect taxpayers in the absence of true housing finance reform.”
To read more about this dangerous power grab by the Obama administration and NTU’s efforts to end the practice, click here.