Next week a House Financial Services subcommittee will hold its first hearing on the future of the GSEs by looking at what immediate steps can be taken to stem the losses at Fannie Mae and Freddie Mac.
Rep. Scott Garrett, R-N.J., will chair the Feb. 9 hearing held by the subcommittee on capital markets and government sponsored enterprises. "This hearing will be the first in a series of hearings to examine the steps Congress can take right now to protect taxpayers from the ongoing bailout of Fannie Mae and Freddie Mac," the subcommittee chairman said.
"With a price tag of $150 billion and counting, Congress must take immediate measures to minimize this cost and ensure taxpayers are never put in this situation again," Rep. Garrett said.
The two — which purchase roughly 70% of all new mortgages being funded today — release their 4Q earnings at the end of February.
They were taken over by the government in Sept. 2008. Both have been feasting on refis the past year, leaving much of the "purchase money" business to FHA.
