Transcript: Statements by Rep. Ann Wagner on government conservatorship of Fannie Mae & Freddie Mac

Edited by Jenny Jiang

Partial transcript of opening remarks by Rep. Ann Wagner (R-Mo) on the government conservatorship of Fannie Mae and Freddie Mac. The House Committee on Financial Services Hearing was held on March 19, 2013:

…As we continue this debate over housing finance reform, I’m keeping 3 very basic thoughts in mind.

The first is that the current situation, as has been brought up previously, the taxpayers backing over 90% of the new mortgage is both unacceptable and untenable.

We’ve, of course, arrived here due to a history of flawed government policies that continue to pose a direct threat to homeowners and taxpayers.

The second thought is that the GSE model has got to go. But in order for that to happen, Congress and the FHFA must work to establish market guidelines that provide transparency and legal certainty for private investors. This will encourage private capital to finance mortgages just as it finances virtually every other credit market in the United States.

Thirdly, I believe that if we can establish those rules and guidelines, we will see private capital enter the mortgage market in a large way – moving us away from mistakes of the past and protecting families and taxpayers in the process.

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