Senate Democrats, led by Senator Elizabeth Warren (Massachusetts), the ranking member of the Banking Committee, urged the Trump administration to halt the efforts to revitalize Fannie Mae and Freddie Mac, which currently cover 70% of the country’s mortgage market since the 2008 financial crisis and have entered federal reserves.
“We have significant concerns that major alterations to these businesses will prioritize investor profitability at the expense of millions of American homeowners. If President Trump makes a positive move with his plan, he could inadvertently lead us back to a foreclosure crisis reminiscent of 2008,” they stated.
Senate Democratic leader Chuck Schumer (NY) and members of the Senate Banking Committee also lent their signatures to the letter.
They urged Pulte and his team to “pause plans to revitalize these businesses until a thorough assessment of the potential impacts on the housing market is conducted.”
The letter emphasized that neither the Federal Housing Administration nor the administration had analyzed how Fannie Mae and Freddie Mac’s operations from government reserves would influence mortgage fees and the broader housing market.
This Democratic resistance was a response to President Trump’s recent social media announcement about his aim to “open these incredible companies,” referring to the two entities in question.
Democrats expressed their intention to clarify to Pulte the changes that have transpired since the FHFA director recently informed lawmakers that privatizing Fannie and Freddie was not a primary focus.
Warren and her colleagues have compiled a list of discussions concerning privatization since the Senate confirmation in March, requesting that Pulte disclose the agencies, departments, and White House officials involved in the privatization discussions.
“Despite your role as a regulator and protector of corporate interests, you recently stated that President Trump will ‘make every decision he wants to make on his own timeline.’ This raises concerns about your apparent readiness to prioritize the President’s political agenda over the necessary safety and soundness of these businesses,” they wrote.
They requested Pulte to respond to their inquiries by June 18th.
Other Democratic signatories included Senators Katherine Cortez Masto (Nevada), Tina Smith (Minnesota), Reuben Gallego (Arizona), Ron Wyden (Oregon), Andy Kim (New Jersey), Mazie Hirono (Hawaii), Chris Van Hollen (Maryland), and Gary Peters (Michigan).
Senator Bernie Sanders (I-Vt.) also added his signature to the letter.
Source: thehill.com