Congresswoman Marcy Kaptur, who has introduced legislation to establish an investigative commission to explore decision making within the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae), applauded today's National Public Radio exposé highlighting the abuses of Freddie Mac.
According to reports issued today, Freddie Mac placed multibillion-dollar bets that would pay out only if homeowners stayed trapped in expensive mortgages with interest rates well above current rates. In 2008, both Fannie Mae and Freddie Mac were bailed out by U.S. taxpayers and placed in federal conservatorship under the Federal Housing Finance Agency (FHFA).
"It is completely unacceptable for Freddie Mac to be positioning itself to benefit at the expense of American homeowners--and taxpayers were left with the bill," Rep. Kaptur said. "It is well past time for the United States Congress to fully investigate the inner dealings between Freddie, Fannie, and Wall Street. FHFA clearly sat idly on the sidelines while American homeowners were used as financial pawns."
Kaptur, who has introduced H.R. 2093, the Fannie Mae and Freddie Mac Investigative Commission Act, as well as legislation for criminal investigations related to the financial crisis, sees change on the horizon. "The abuses of Wall Street will continue to come to light, but Congress must do its part. This must be fully investigated and there must be real accountability," Kaptur said.