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Another Year, Another Reminder the Net Worth Sweep Must End

Thursday, May 3, 2018

Fannie Mae reported robust first quarter earnings earlier this morning, with comprehensive income of $3.9 billion. Courtesy of the Net Worth Sweep, by June of this year Fannie expects to pay Treasury a dividend payment of $938 million. With this latest installment, Fannie will then have paid back Treasury and taxpayers its original bailout funds […]

“Looking at” GSE Reform for Ten Years – and Counting

Wednesday, May 2, 2018

Steven Mnuchin was not even confirmed as Treasury Secretary when he assured in the fall of 2016 that GSE reform would be a top priority for the Trump Administration. That’s still his position. And it will be his position next year. The great GSE reform move of 2017 and 2018 will come in 2019, he […]

Time to Stop Taking Non-Serious GSE Reform Plans Seriously

Friday, March 23, 2018

As the tenth anniversary of the financial crisis that nearly brought down the global economy nears, it is astounding that ill-conceived experiments that would expose taxpayers to the risk of future bailouts are still being debated. But that is exactly what is going on. Mortgage Bankers Association President David Stevens earnestly hopes Congress will agree […]

Washington Dithers on GSE Reform as Housing Impedes Economic Growth

Friday, February 23, 2018

The U.S. economy seems to be humming along. While Democrats bristle when President Trump takes credit for this, it is hard to deny that many key indicators look pretty good. But not all do.  Housing remains stubbornly soft and Washington’s neglect of Fannie Mae and Freddie Mac helps explain why. This week the Wall Street […]

Statement by Investors Unite Executive Director Tim Pagliara on U.S. Supreme Court’s Declining to Take up Shareholder Suits Stemming from Net Worth Sweep

Tuesday, February 20, 2018

The U.S. Supreme Court today let stand rulings in three shareholder lawsuits that challenged the legality of the 2012 amendment to the term of the conservatorship of the government sponsored enterprises Fannie Mae and Freddie Mac. The amendment, known as the Net Worth Sweep, diverts the GSEs’ quarterly earnings to the U.S. Treasury.  In response, […]