While Barney Frank held on to win his Congressional seat back, he will lose the chairmanship of the House Financial Services Committee. Representative Spencer Bachus of Alabama will likely step in as Committee Chair and will have primary responsibility for oversight of rule-making for the Dodd-Frank legislation and the long delayed reform of Fannie and Freddie. “Republicans have said that GSE [government-sponsored enterprise] reform will be at the top of their agenda,” Killmer of the Mortgage Bankers Association observed.“ They’ll clearly be approaching this issue from a very different perspective than their Democratic predecessors, particularly with regard to the role and scope of the government’s involvement in the housing finance chain.” Here.
The Obama Administration has embraced the nationalization of the GSE’s under the conservatorship agreement, however even under a Democrat Congress the support of these institutions has eroded. It is extremely likely that the Republican Congress will terminate the conservatorship, structuring a private industry resolution of the current fiscal morass these Administration consorts pose to the American Taxpayer.
Look to Republicans like Jeb Hensarling of Texas to force the hand of Treasury Secretary Geithner, FDIC Chair Sheila Bair and Consumer Head Elizabeth Warren, in making Dodd Frank regulations less onerous on financial institutions and less costly to consumers. Jeb Hensarling will certainly push through the GSE Bailout Elimination and Taxpayer Protection Act (HR 4889) which provides the foundation for a transition to a Mortgage Industry without GSE’s. It requires increased Fannie and Freddie capital requirements, a sunset in the GSE’s charters and a orderly reduction in their operations and presence in the mortgage capital markets. http://www.washingtonwatch.com/bills/show/111_HR_4889.html Here. This will force the Obama Administration to confront its irresponsible inaction on Fannie Mae and Freddie Mac. Ultimately, Obama will either have to agree to this reform, providing badly needed relief to struggling American Taxpayers from the onerous costs of this perpetual subsidy and resulting economic malaise that continues to paralyze the Housing/Mortgage Industries and American Economy or display his intransigence, unwillingness and/or inability to provide meaningful effectual change in the existing economic morass.
Tell ’em where you saw it. Http://www.victoriataft.com
