message has been sent to the following recipients courtesy of link on Investors Unite website:
* Representative Tom Reed
The content of my message is as follows:
I write today to urge you to support H.R. 1673, which was recently introduced by Representative Marsha Blackburn, and has since been referred to the Financial Services Committee.
As you may be aware, the bill establishes a reserve fund in which to hold the profits of Government Sponsored Enterprises Fannie Mae and Freddie Mac, which currently operate under the conservatorship of the Federal Housing Finance Agency until substantive housing reform legislation is passed.
In the wake of the 2008 financial crisis, Congress acted quickly and decisively to rescue the housing market by passing the Housing and Economic Recovery Act, which created the FHFA and made it conservator of the GSEs. These actions stabilized the market and allowed the GSEs to resume their mission of increasing access to affordable homeownership by providing liquidity in the secondary mortgage market. By 2012, the GSEs had returned to profitability and have since repaid the Treasury over $40 billion more than was spent to stabilize them after the crisis.
However, under an amendment made to HERA in 2012, the Treasury claims 100% of the GSEs' profits and uses the money as general revenue. This "net worth sweep" not only robs shareholders of rightful return on their investment, but, even more alarmingly, also leaves the enterprises with virtually no capital buffer against any potential future losses, greatly increasing the likelihood that the taxpayer would be asked to foot the bill again. This has now become an imminent possibility.
Rep. Blackburn's bill is a good faith effort to stop the Treasury from using the GSEs as a "piggy bank" to artificially draw down the deficit, and instead will allow the enterprises to build a capital reserve until Congress determines the future of the American housing finance system. This is a bipartisan, short-term solution that curbs an outrageous federal overreach, protects taxpayers, allows for continued access to mortgage credit, and respects the rule of law.
Please take a stand for the taxpayer by supporting H.R. 1673. I appreciate your time and service to our country, and look forward to hearing from your office on this tremendously important issue.
[My postal address was included here]