WASHINGTON, D.C. – December 12, 2014 – (RealEstateRama) — U.S. Representative Ed Royce (R-CA) released the following statement in response to the Federal Housing Finance Agency’s (FHFA) announcement that it will divert money to the Housing Trust Fund and the Capital Magnet Fund pursuant to the Agency’s interpretation of the Housing and Economic Recovery Act of 2008 (HERA):
“Contrary to what Fannie and Freddie apologists claim, the GSEs have yet to repay any of the taxpayer-funded bailout funds they received, which makes today’s announcement by the FHFA outrageous. Money coming in from the GSEs should go to the taxpayers instead of a slush fund for ideological housing groups to play around with.”
Rep. Royce, a senior member of the House Financial Services Committee, authored the Pay Back the Taxpayers Act of 2014 to specifically prohibit contributions by Fannie Mae and Freddie Mac to the Housing Trust Fund and the Capital Market Fund while the institutions are in conservatorship or receivership.
Rep. Royce also joined House Financial Services Chairman Jeb Hensarling (R-TX) in a writing a letter to FHFA Director Mel Watt urging the continuation of the FHFA’s five-year-old policy of suspending contributions to the Housing Trust Fund and the Capital Magnet Fund.
Additionally, during consideration of the FY 2015 Transportation, Housing and Urban Development Appropriations bill, the House unanimously adopted an amendment authored by Rep. Royce which prohibits the GSEs from distributing funds to both the Housing Trust Fund and the Capital Magnet Fund.