WASHINGTON, DC – October 25, 2010 – (RealEstateRama) — Rep. Ed Royce (R-CA), a senior member of the House Financial Services Committee, issued a statement following the release of a Federal Housing Finance Agency (FHFA) report stating that Fannie Mae and Freddie Mac’s taxpayer bailout will exceed $360 billion over the next three years.
“These new numbers are yet another reminder that the epic blunder known as Fannie Mae and Freddie Mac was created by Washington and is being paid for by the US taxpayers.
“It is unfortunate that the most expensive bailout in history could have been largely avoided. Had Barney Frank and the rest of the Democratic Party listened to those who wanted true GSE reform five years ago, we could have reigned in the excessive risk taking and prevented this sad episode.
“Going forward, we must move away from this failed model of private profits and public losses and create a mortgage finance system less susceptible to extreme boom-bust cycles.”
NOTE: For years, Royce worked to bring strong reforms to Fannie and Freddie. In 2005, when the House considered GSE reform legislation, Rep. Royce introduced an amendment to give the regulator the authority necessary to curtail the systemic risk posed by Fannie and Freddie’s portfolios.
