DALLAS (KRLD) – A North Texas Congressman’s push to put an end to Fannie Mae and Freddie Mac is gaining support in Washington.
House Republican Conference Chairman Jeb Hensarling (R-Dallas) wants to “wind down” the two home mortgage firms within five years. “This system that privatized profits and socialized losses must come to an end,” he stated flatly.
Hensarling says the companies have cost taxpayers billions of dollars since they were taken over by the federal government in 2008. “I believe when the history is written Fannie and Freddie will prove to be the mother of all taxpayer bailouts.”
The two mortgage firms were in danger of failing in 2008. Their rescue has cost the government $134 billion so far.
In addition to taxpayer cost, Hensarling says both Fannie and Freddie are hurting the U.S. economy. “The sooner that we put Fannie and Freddie on a pathway to ultimately invite in a competitive market our economy will be better [and] more jobs will be created.”
A House committee could vote on Hensarling’s bill next month. Arizona’s John McCain is sponsoring a similar bill in the Senate.