Wagner Statement at Today's Capital Markets and Government Sponsored Enterprises Subcommittee Hearing
Washington, DC – Congresswoman Ann Wagner (R-MO) delivered the following opening statement at today’s Capital Markets and Government Sponsored Enterprises subcommittee hearing on Fannie Mae and Freddie Mac: How Government Housing Policy Failed Homeowners and Taxpayers and Led to the Financial Crisis:
“Thank you Mr. Chairman.
“At the signing ceremony for the Dodd-Frank bill in July of 2010, President Obama proclaimed that ‘unless your business model depends on cutting corners or bilking your customers, you’ve got nothing to fear from reform.’
“Unfortunately, the bill the President signed that day did nothing to reform the two entities that cut the most corners, bilked taxpayers out of billions of dollars, and were more responsible than anybody or institution for the financial crisis of 2008.
“I’m of course referring to Fannie Mae and Freddie Mac, the government mortgage giants that for years worked to drive down underwriting standards and increase borrower leverage in the housing market – all under the guise I believe of promoting homeownership.
“These policies created an enormous housing bubble which inevitably crashed, and in the process hurt the very families, real families that were supposed to be helped, and instead stuck the taxpayers with the bailout bill.
“As our committee works to bring real and lasting reform to the housing market, I hope that today’s hearing serves as a vivid reminder of where misguided government policies have gotten us in the past.
“I thank you Mr. Chairman for this hearing, I thank our witnesses for being here today and I yield back my time.”