Alabama U.S. Senator Richard Shelby continues to keep his constituency in Huntsville and its surrounding areas appraised of events that are transpiring with the taxpayers’ money and business in Washington, DC.
Context excerpts are noted below to give you a feeling of the Senator’s position on the mortgage market.
Says Shelby, “Can our mortgage market operate efficiently without a government guarantee?
How the Committee answers this question will dictate how we approach housing finance reform legislation. If the Committee decides that the housing market needs a government guarantee, then it is likely that housing finance reform will be largely a debate over how to structure the guarantee. Reform will be easier, but also less significant because we will essentially be preserving the status quo.
<<<<< Click on the slide show and Senator Shelby video on the mortgage industry
However, if the Committee decides that the housing market can and should function without a government guarantee, reform will then focus on how to transition to a private market.
In that case, housing finance reform will be a bold undertaking that will fundamentally reshape how this nation finances homeownership . . . While some say there is no need for bold reform; I believe that all options must be on the table . . .
The implicit ‘cost-free, guarantee of Fannie Mae and Freddie Mac has already soaked the American taxpayer for over $170 billion. FHFA estimates that the total cost could more than double over the next two years.
It is clear that the old way of doing things failed on a massive scale. The question now is whether we have learned anything from the experience . . . “
The Alabama Senator welcomes your questions and can be reached through his staff in Washington, DC at (202) 224-5744 or in Huntsville at (256) 772-0460.
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This column was prepared for publication by Hank Richards, knotmove.com writer for Huntsville, Alexandria the Gulport/Biloxi/Gulcoast Restoration Region, Gulf Coast Political Buzz and press pool reporter for the British Petroleum Recovery Program.
To report a breaking story or to write a letter to the editor for publication, contact Hank at (256) 417-6084 or send an email to [email protected] at his website www.pronlinenews.com