Stegman said the Administration would not end the conservatorship of the GSEs without a viable alternative that provides that elusive balance between eliminating taxpayer risk while still allowing credit access.
"I know that many of you want to know where we are on housing finance reform," Stegman said. "On this subject, let me be clear: the Administration stands by our belief that the only way to responsibly end the conservatorship of Fannie Mae and Freddie Mac is through legislation that puts in place a sustainable housing finance system that has private capital at risk ahead of taxpayers, while preserving access to mortgage credit during severe downturns."
This will never happen. Private capital at risk ahead of government bailout while preserving access to mortgage credit during severe downturns. Never going to happen because the private model of PLS (private loan security) as run by the banks in 2008 still has not returned to the market and this is 2015 now. If the government does not want to backstop housing, then simply housing will take down the USA economically on next housing downturn. This is why FDR put Fannie in place decades ago. Private captal will leave at first hint of bad times and not return for a long, long time.
Ask yourself, how did the savings and loans do on the downturn? They went away and a huge bailout followed. This time is different Fannie Mae and Freddie Mac took on all the PLS problems onto their shoulders and their own problems and carried our country through the problem all the long paying back the bailout with a huge profit to the TAXPAYER!
Which seems like a better deal? Huge S&L bailout that NO ONE paid back and a system that went away with nothing but Fannie to fill the void OR the Fannie model that supported both the TBTF Banks in 2008 and S&L problem when there was NO WHERE TO TURN?
Fannie and Freddie WORK! Why would you change that? Why would you do away with 30 year fixed mortgages for 5 year Arms? Politicians Are talking with both sides of their mouths!
Ask yourself was it the big banks or Fannie mae that saved American housing? It was not banks, and it was not the US Treasury. The taxpayer did not lose on its deal, they gained all their money back from the bailouts and Mortgages that would have never been refinanced or issued without fannie for last 7 years. Without Fannie the US mortgage market would be the walking DEAD!