U.S. Congressman Marlin Stutzman, a member of the House Financial Services Committee, issued the following statement today during the committee's markup of the PATH Act, legislation designed to end the taxpayer-funded bailout of Fannie Mae and Freddie Mac and offer Americans increased financing choices in the housing market.
"It's time to break Washington's cycle of bailouts. The federal government's reckless policies helped create the fiscal crisis when bureaucrats created perverse incentives to push too many families into homes they couldn't afford. Instead of reining in Fannie Mae and Freddie Mac, President Obama and a Democrat Congress gave these corrupted government sponsored enterprises a nearly $200 billion bailout after the housing bubble burst.
"While the government controls 90 percent of the housing finance market, the same taxpayers who are working extra hours to make their own mortgage payments are now on the hook for more than $5 trillion in mortgage guarantees. That's unacceptable.
"Current and future homeowners deserve better options than Washington's failed approach and taxpayers deserve a plan that prevents blank-check bailouts. The PATH Act would end Fannie and Freddie's bailouts, phase-out the government barriers that put technocrats ahead of taxpayers, and offer hardworking families more financial tools to meet their unique needs.
"It's time to put honest Americans ahead of unelected elites. It's time to move the PATH Act forward."
The PATH Act, the Protecting American Taxpayers and Homeowners Act:
·Ends the bailout of Fannie Mae and Freddie Mac and responsibly phases out Government-Sponsored Enterprises over a five year period.
·Ends reckless policies that have left taxpayers responsible for $5.1 trillion in mortgage guarantees
·Empowers Americans with more choices in selecting the mortgage products that meet their needs.