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:
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.