Revamp (Do Not Remove)

“He (President Obama) says he wants to get rid of [Fannie and Freddie]. We’ve got to be very, very careful doing that. I have no problem looking at them, revamping. But I think getting rid of them is not the right thing to do.”


Senate Majority Leader Harry Reid


By Paul Muolo 
August 12, 2013 


Senate Majority Lender Harry Reid may support the president on many issues – but not when it comes to winding down Fannie Mae and Freddie Mac. “We have to make sure we protect home ownership and we have to make sure we do that and the reason we have Fannie and Freddie is because during the Great Depression people couldn’t buy homes and that’s why they (Fannie and Freddie) were developed,” he said late last week. Reid noted that he will consider what the White House has to say on the GSEs, but is offering no guarantees on what he will support. Some mortgage trade group officials are pointing to Reid’s comments as a sign that perhaps, finally, the GSE issue is being correctly understood in Washington. One lobbyist predicted that when it comes to an actual bill, it may be a matter of replacing what he calls the “entrance and foyer” of the GSEs, without gutting the “plumbing”… 

Meanwhile, the federal government is on track to record a significant drop in the budget deficit this year with stronger growth helping to boost tax revenues. The Congressional Budget Office, in a new forecast, estimates that the deficit for the first 10 months of the fiscal year will be $606 billion, compared to $974 billion in the same period a year earlier. One reason for the improvement? Answer: the GSEs earning $15 billion a quarter in real profits. Annualized, that’s $60 billion…

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  • commented 2013-09-14 17:36:27 -0700
    we all try the best to restore fanni &freddie thanks sen Reid for your post
  • commented 2013-08-11 20:04:11 -0700
    I am glad to see that still somebody has common sense in Congress (besides Michael Capuano)