Tell Your Representatives to Support Government Sponsored Enterprise Bailout Elimination and Taxpayer Protection Act

Call Congress and take action!

by: freedom works | published: 04 01, 2011

Introduced by Rep. Hensarling (R-TX) H.R. 1182 GSE Bailout Elimintation and Taxpayer Protection Act would end conservatorship for government sponsored enterprises Fannie Mae and Freddie Mac. Taxpayers should not be forced to bailout Fannie Mae and Freddie Mac from their poor lending decisions.

Fannie Mae and Freddie Mac must be allowed to sink or swim in a free market. The government sponsored enterprises are a prime example of crony capitalism. Evidence shows that Fannie Mae and Freddie Mac played a major role in the recent housing bubble. The government sponsored enterprises Fannie Mae and Freddie Mac were at the center of the collapse. Since these two public companies knew they had an implicit taxpayer bailout guarantee, they took more risks than they otherwise would.

The GSE Bailout Elimination and Taxpayer Protection Act would end Fannie Mae and Freddie Mac’s conservatorship within two years. It will immediately provide taxpayers relief by repealing the Affordable Housing Trust Fund, the affordable housing goals mandate and caps their maximum portfolio size at $700 billion. That cap would be reduced to $250 billion over the next five years.

Mortgage lending should take place on a competitive playing field without any government advantages. This bill is a step in the right direction towards privatizing Fannie Mae and Freddie Mac for the sake of taxpayers and economic prosperity.

Click here to see FreedomWorks' letter of support.

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