Letter: Bills would alter American dream

Published:

 

Members of the Senate banking committee are introducing bills to wind down Fannie Mae and Freddie Mac. These bills eliminate these institutions that provide the American taxpayers affordable interest mortgage loans and housing market stability. This will cause higher mortgage interest rates, affecting 20 percent of the economy. It also funds “affordable” housing, another attempt of redistributing wealth.

In 2008, the treasury backed FNMA and FMCC with $187 billion, as the “too big to fail” banks sold fraudulent assets to FNMA and FMCC. They have since paid back the Treasury more than $200 billion. The treasury will not release FNMA and FMCC from conservatorship, contrary to their 2008 agreement. In 2012, the Treasury changed the agreement to take 100 percent of their profits.

In violation of the Fifth Amendment, several bills in Congress eliminate stockholders of FNMA and FMCC. Millions of people who own FNMA and FMCC stock through pensions, 401(k)s, and mutual funds, will be affected.

Bills introduced by Congress have good intentions. It was Congress who liberalized the lending laws permitting the housing bubble and collapse. These bills reward banks that created the damaging effects to millions that lost their homes.

Encourage our representatives and senators to vote against these bills.

Mike Davis

Vancouver