E-News From Senator Dean Heller

Senator Dean Heller
2013-06-28 15:30:05
ICYMI: Heller Joins Bipartisan Group to Reform Fannie Mae and Freddie Mac (Washington, D.C.) – This week, U.S Senator Dean Heller (R-NV) joined Senators Bob Corker (R-TN), Mark Warner (D-VA), Mike Johanns (R-NE), Jon Tester, (D-MT), Heidi Heitkamp, (D-ND), Jerry Moran, (R-KS), and Kay Hagan, (D-NC) to introduce legislation to reform and strengthen America’s housing finance system. The bill they introduced replaces the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac with a privately capitalized system that preserves market liquidity and protects taxpayers from future economic downturns. “Much of the difficulty Nevadans are facing today can be traced back to the collapse of the housing market,” said Heller. “My state and Americans across the country cannot wait any longer for Congress to finally tackle a major contributing factor to the 2008 economic downturn. I am pleased that my Republican and Democratic colleagues could come together to address this piece of the puzzle and prevent another devastating housing crisis in the future.” At a press conference with the bill’s other sponsors, Senator Heller issued the following statement: presser CLICK HERE TO VIEW THE CLIP Background: In 2008, Fannie Mae and Freddie Mac were taken into government conservatorship and given a $188 billion capital injection from taxpayers to stay afloat. As a result of this bailout, the private market has almost completely disappeared, and so nearly every loan made in America today comes with a full government guarantee. Despite this unsustainable situation, there has still been no real reform to our housing finance system since the financial crisis. The Housing Finance Reform and Taxpayer Protection Act (S. 1217): Mandates 10 percent capital, up front, for the system to protect taxpayers against future bailouts. Winds down Fannie Mae, Freddie Mac and the Federal Housing Finance Agency (FHFA) within five years of bill passage. Transfers appropriate utility duties and functions to the modernized, streamlined and accountable Federal Mortgage Insurance Corporation (FMIC), modeled in part after the FDIC. Replaces the failed “housing goals” of the past with a transparent and accountable market access fund that focuses on ensuring there is sufficient decent housing available. The fund is NOT paid for with tax dollars, but through a small FMIC user fee that only those who choose to use the system pay. Ensures institutions of all sizes have direct access to the secondary market so local banks and credit unions aren’t gobbled up by the mega banks when Fannie and Freddie are dissolved. Follow Senator Heller on Facebook On Twitter @SenDeanHeller And on YouTube *If you are no longer interested in receiving updates, please do not respond to this email, as it is an unattended e-mail address. Please click the link below if you would like to be removed from future e-mails.
Senator Dean Heller e-Newsletter
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ICYMI: Heller Joins Bipartisan Group to Reform Fannie Mae and Freddie Mac

(Washington, D.C.) – This week, U.S Senator Dean Heller (R-NV) joined Senators Bob Corker (R-TN), Mark Warner (D-VA), Mike Johanns (R-NE), Jon Tester, (D-MT), Heidi Heitkamp, (D-ND), Jerry Moran, (R-KS), and Kay Hagan, (D-NC) to introduce legislation to reform and strengthen America’s housing finance system. The bill they introduced replaces the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac with a privately capitalized system that preserves market liquidity and protects taxpayers from future economic downturns.

“Much of the difficulty Nevadans are facing today can be traced back to the collapse of the housing market,” said Heller. “My state and Americans across the country cannot wait any longer for Congress to finally tackle a major contributing factor to the 2008 economic downturn. I am pleased that my Republican and Democratic colleagues could come together to address this piece of the puzzle and prevent another devastating housing crisis in the future.”

At a press conference with the bill’s other sponsors, Senator Heller issued the following statement:

presser

CLICK HERE TO VIEW THE CLIP

Background:

In 2008, Fannie Mae and Freddie Mac were taken into government conservatorship and given a $188 billion capital injection from taxpayers to stay afloat. As a result of this bailout, the private market has almost completely disappeared, and so nearly every loan made in America today comes with a full government guarantee.  Despite this unsustainable situation, there has still been no real reform to our housing finance system since the financial crisis.

The Housing Finance Reform and Taxpayer Protection Act (S. 1217):

  • Mandates 10 percent capital, up front, for the system to protect taxpayers against future bailouts.  
  • Winds down Fannie Mae, Freddie Mac and the Federal Housing Finance Agency (FHFA) within five years of bill passage.
  • Transfers appropriate utility duties and functions to the modernized, streamlined and accountable Federal Mortgage Insurance Corporation (FMIC), modeled in part after the FDIC.
  • Replaces the failed “housing goals” of the past with a transparent and accountable market access fund that focuses on ensuring there is sufficient decent housing available. The fund is NOT paid for with tax dollars, but through a small FMIC user fee that only those who choose to use the system pay.
  • Ensures institutions of all sizes have direct access to the secondary market so local banks and credit unions aren’t gobbled up by the mega banks when Fannie and Freddie are dissolved.

Follow Senator Heller on Facebook

On Twitter @SenDeanHeller

And on YouTube

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Senator Dean Heller
324 Hart Senate Office Building Washington, DC 20510

Phone: 202-224-6244
Fax: 202-228-6753