August 21, 2014
Our organization is guided by three principles:
Reorganize Fannie Mae and Freddie Mac as private bond guarantors funded by private capital, without any special privileges or a Federal Charter;
Protect and ensure the continued availability and affordability of the 30-year fixed rate mortgage, which is the main engine of the housing market and the primary avenue for sustainable homeownership;
The rule of law is the basis for American Capitalism and must be acknowledged and respected in order for properly functioning capital markets. This is the cornerstone for attracting private capital to any market, especially the housing finance market. The rules of the game cannot be changed in the middle of an inning.
The legal question with the Treasure, Fannie and Freddie involves the rule of law and the willingness to honor contracts. Regarding the article “White Flag for Frannie Investors” (Heard on the Street, Aug. 12), the title should be “Time for the U.S. Government to Surrender.” I disagree with the thrust of the article, which is that the decline in the last quarter’s payout from Fannie Mae and Freddie Mac has…
August 20, 2014
Two years ago, in August 2012, the U.S. Treasury Department issued its so-called “sweep” rule forcing mortgage giants Fannie Mae and Freddie Mac to surrender all future profits. Shareholders were angered. Some sued the government. Their displeasure now has a measure of vindication. Near the end of July, an unnamed source leaked a confidential Treasury document (see pdf) to the public, dated June 13, 2011, showing that the department was…