Housing Lobbyists Are Defending Fannie and Freddie
Whenever Washington politicians consider legislation that will take away special treatment or special handouts for a particular group of people, you can bet your bottom dollar that group will wage war to maintain the status quo.
Politico reports (sub. req’d):
The housing industry is revving up an extensive grassroots lobbying effort this month pressuring lawmakers to push for changes to a House bill overhauling the mortgage market before it comes up for a floor vote later this year. National trade groups representing real estate agents, home builders and mortgage lenders are mobilizing their state affiliates and local membership to reach out to their members of Congress during the five-week summer break.
What bill are they talking about? It’s the one that will end the mortgage-finance giants Fannie Mae and Freddie Mac in order to protect taxpayers and homeowners.
The Protecting American Taxpayers and Homeowners (PATH) Act of 2013, introduced by Reps. Scott Garrett (R-NJ) and Jeb Hensarling (R-TX), would create a sustainable housing finance system. Maintaining the status quo – with Fannie and Freddie getting explicit, taxpayer-funded backing from the federal government – will only harm Americans.
Fannie and Freddie need to go, and though these big-government special interests won’t like it, the PATH Act would accomplish that objective.