Reform needed to avoid new crisis
- May 6, 2014
Dayton Daily News
May 6, 2014, by Loyal Blair
To prevent another housing crisis from occurring in the future, reform needs to be made, but I am dismayed at how recently proposed Fannie Mae and Freddie Mac reform legislation in the U.S. Senate completely disregards the rights of shareholders who are invested in the two companies.
In 2008, when the government injected 187.5 billion taxpayer dollars into Fannie and Freddie, the two companies were placed into conservator-ship. Under the agreement , Fannie and Freddie were required to pay a 10 percent dividend to the Treasury. But in August 2012, the government arbitrarily changed the agreement and began taking 100 percent of Fannie and Freddie profits.
This is shareholder money that belongs to individual retirees, veterans like myself, teachers, policemen, and people invested through mutual funds and others. Fannie and Freddie have paid back over $200 billion to the Treasury — more than was loaned to them.
What’s even more concerning is that our armed forces and veterans could get an even worse deal in this “reform” package. Mortgage foreclosure protections for service members are not written into the new legislation. Special programs for home modifications for disabled veterans could also fall through the cracks.
I hope that Senators Sherrod Brown and Rob Portman will work to amend this legislation.
LOYAL BLAIR, DAYTON
View Blair’s letter here: Reform needed to avoid new crisis