Reports that Fannie Mae and Freddie Mac are close to paying back taxpayers for the largest bailout in American history are completely false, said Financial Services Committee Chairman Jeb Hensarling, R-Texas.
“Fannie and Freddie have not ‘repaid’ taxpayers one thin dime. Reports to the contrary are pure Washington spin,” said Chairman Hensarling. “Legally, they can’t pay back taxpayers because their nearly $200 billion bailout was a draw from the Treasury, not a loan. But the truth is Fannie and Freddie cost the taxpayers a whole lot more than the amount of their bailout.”
“Their failed business model was at the epicenter of the financial crisis – a crisis that threw millions of Americans out of work and ruined people’s lives. Fannie and Freddie can never make amends for the catastrophic damage their failed business model caused our economy – a failed model that is still alive today and must be terminated. Any positive cash flow Fannie and Freddie are experiencing is due to the government-sanctioned monopoly they retain over the market.”
HousingWire recently featured Hensarling in an in-depth article in its September issue, outlining his goals for the housing market.