Senator calls for investigation into Fannie, Freddie

by Ryan Smith20 Apr 2016
The chairman of the Senate Banking Committee is calling for an investigation of Fannie Mae and Freddie Mac.

Sen. Richard Shelby (R-Ala.) has requested that the Government Accountability Office and the Congressional Budget Office investigate the practices at Fannie and Freddie, as well as the Federal Housing Finance Agency, which oversees the government-sponsored enterprises, according to a report in the Morning Consult.

In a letter to U.S. Comptroller Gene Dodaro, who heads up the GAO, Shelby asked for a report on how the FHFA’s actions could influence “the enterprises’ dominance in residential mortgage markets,” as well as the agency’s “current and future financial demands on the Treasury.”

He also made a separate request to the CBO for a study into the government’s conservatorship of the GSEs, according to Morning Consult.

“Congress has a responsibility to conduct proper oversight over both the FHFA and the GSEs,” Shelby said in a statement. “It is my hope that GAO and CBO will provide the committee with meaningful data regarding the market impact of FHFA’s decisions to ensure that Congress takes steps to protect American taxpayers from risk.”

COMMENTS

  • by Anonymous and fed up | 4/20/2016 11:51:47 AM

    These are the imbeciles we have in Congress. Fannie has long since paid back every single penny they borrowed, plus interest, and for several years has been flat out robbed dry by Treasury. There is no other word for it. Theft is the only word that accurately describes it. Not to mention the system is working again. In spite of these facts, these idiots keep saying we need GSE reform. No we don't. We don't need to reinvent the wheel. The only reform we need is in Congress. Throw these idiots out!

  • by Ken CT | 4/20/2016 12:16:06 PM

    I agree to the above. Both are quite profitable now.

  • by Tex | 4/20/2016 12:22:04 PM

    Congress is mad because there was a back lash when they wanted to use Fannie/Freddie funds for other purposes - like repairing roads that they have neglected for forever. I have never seen such stupidity and dishonesty.

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