Thursday, May 15, 2014

Senate Baking Committee Passes Legislation to Phase-Out Fannie Mae and Freddie Mac

A lot of news coming out of Washington, D.C. lately is focused on the gridlock and partisan sniping in Congress, but there was a bit of good news that I wanted to share with you.

The Senate Banking Committee, on which I serve, today passed bipartisan legislation to protect taxpayers from future economic downturns and shrink the government’s role in our housing finance system. This legislation is so important because in 2008 American taxpayers were forced to bailout government-supported Fannie Mae and Freddie Mac to the tune of approximately $187 billion. A lot has changed since the financial crisis started, but taxpayers are still on the hook for propping up these two housing finance giants.

That’s why I joined several of my colleagues last year in crafting legislation that winds down Fannie Mae and Freddie Mac, preserves the 30-year fixed rate mortgage, and ensures access to the mortgage market for small lenders and the rural residents they serve. The bill that the Banking Committee passed today includes all of these important principles.

Now that the committee has passed this legislation with bipartisan support, it’s crucial that the full Senate acts.

About the Author:

Michael Owen "Mike" Johanns is the senior United States Senator from Nebraska, in office since 2009. He served as the Governor of Nebraska from 1999 until 2005, and he was chair of the Midwestern Governors Association in 2002. In 2005, he was appointed by President George W. Bush to serve as the Secretary of Agriculture, where he served from 2005 from 2007, becoming the fourth Nebraskan to hold the position.

Johanns will not be seeking reelection for another term in the U.S. Senate choosing to enter the private sector in order to continue his work in improving the conditions for farmers and ranchers in Nebraska from a grassroots level.

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