U.S. Senator Bob Corker (R-Tenn.), a member of the Senate Banking Committee, today applauded Congressmen John Delaney (D-Md.), John Carney (D-Del.), and Jim Himes (D-Conn.) for introducing a housing finance reform bill in the House of Representatives that winds down the mortgage behemoths, Fannie Mae and Freddie Mac, which required a $188 billion bailout in 2008 but have since escaped reform.
"I congratulate Congressmen Delaney, Carney, and Himes on introducing their housing finance reform bill and welcome their thoughtful and productive contribution to this important issue. Most who have spent any time on this issue understand that the status quo is unacceptable, and I hope many more will contribute to the debate on how we can move this effort forward," said Corker.
On May 15, the Senate Banking Committee passed the Housing Finance Reform and Taxpayer Protection Act (S.1217), legislation introduced by Corker and Senator Mark Warner (D-Va.), in a 13-9 bipartisan vote.
In 2008, Fannie Mae and Freddie Mac were taken into government conservatorship and given a $188 billion capital injection from taxpayers to stay afloat. As a result of this bailout, the private market has almost completely disappeared, and so nearly every loan made in America today comes with a full government guarantee. Despite this unsustainable situation, Congress still has not reformed our housing finance system since the financial crisis.