Aa
Release from White House:
White House warned 17 times about problems with Fannie and Freddie
September 22, 2008 - 11:07 ET
For many years the President and his Administration have not only warned of the systemic consequences of financial turmoil at a housing government-sponsored enterprise (GSE) but also put forward thoughtful plans to reduce the risk that either Fannie Mae or Freddie Mac would encounter such difficulties. President Bush publicly called for GSE reform 17 times in 2008 alone before Congress acted. Unfortunately, these warnings went unheeded, as the President's repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems.
2001
April: The Administration's FY02 budget declares that the size of Fannie Mae and Freddie Mac is "a potential problem," because "financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity."
2002
May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)
2003
January: Freddie Mac announces it has to restate financial results for the previous three years.
February: The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that "although investors perceive an implicit Federal guarantee of [GSE] obligations," "the government has provided no explicit legal backing for them." As a consequence, unexpected problems at a GSE could immediately spread into financial sectors beyond the housing market. ("Systemic Risk: Fannie Mae, Freddie Mac and the Role of OFHEO," OFHEO Report, 2/4/03)
September: Fannie Mae discloses SEC investigation and acknowledges OFHEO's review found earnings manipulations.
September: Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact "legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises" and set prudent and appropriate minimum capital adequacy requirements.
October: Fannie Mae discloses $1.2 billion accounting error.
November: Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any "legislation to reform GSE regulation should empower the new regulator with sufficient strength and credibility to reduce systemic risk." To reduce the potential for systemic instability, the regulator would have "broad authority to set both risk-based and minimum capital standards" and "receivership powers necessary to wind down the affairs of a troubled GSE." (N. Gregory Mankiw, Remarks At The Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03)
September 22, 2008 - 11:07 ET
For many years the President and his Administration have not only warned of the systemic consequences of financial turmoil at a housing government-sponsored enterprise (GSE) but also put forward thoughtful plans to reduce the risk that either Fannie Mae or Freddie Mac would encounter such difficulties. President Bush publicly called for GSE reform 17 times in 2008 alone before Congress acted. Unfortunately, these warnings went unheeded, as the President's repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems.
2001
April: The Administration's FY02 budget declares that the size of Fannie Mae and Freddie Mac is "a potential problem," because "financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity."
2002
May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)
2003
January: Freddie Mac announces it has to restate financial results for the previous three years.
February: The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that "although investors perceive an implicit Federal guarantee of [GSE] obligations," "the government has provided no explicit legal backing for them." As a consequence, unexpected problems at a GSE could immediately spread into financial sectors beyond the housing market. ("Systemic Risk: Fannie Mae, Freddie Mac and the Role of OFHEO," OFHEO Report, 2/4/03)
September: Fannie Mae discloses SEC investigation and acknowledges OFHEO's review found earnings manipulations.
September: Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact "legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises" and set prudent and appropriate minimum capital adequacy requirements.
October: Fannie Mae discloses $1.2 billion accounting error.
November: Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any "legislation to reform GSE regulation should empower the new regulator with sufficient strength and credibility to reduce systemic risk." To reduce the potential for systemic instability, the regulator would have "broad authority to set both risk-based and minimum capital standards" and "receivership powers necessary to wind down the affairs of a troubled GSE." (N. Gregory Mankiw, Remarks At The Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03)
Lately, I think our politicians on both sides have forgotten who they work for! :)
As you all know I am not giving my opinions. But, I will post things that I find from time to time - so here goes about the problems we're facing with Fannie Mae and Freddie Mac:
http://blogwonks.com/2008/09/17/mccain-predicted-fannie-mae-and-freddie-mac-debacle/
http://www.govtrack.us/congress/record.xpd?id=109-s20060525-16&bill=s109-190
http://themountainsage.wordpress.com/2008/09/17/mccain-called-for-reform-of-freddie-mac-and-fannie-mae-in-may-2006/
http://www.omgili.com/omgili/%22Regulatory+Reform+Act%22/
http://themountainsage.wordpress.com/2008/09/18/bush-proposed-a-new-agency-to-oversee-freddie-mac-and-fannie-mae/
http://blogwonks.com/2008/09/17/mccain-predicted-fannie-mae-and-freddie-mac-debacle/
http://www.govtrack.us/congress/record.xpd?id=109-s20060525-16&bill=s109-190
http://themountainsage.wordpress.com/2008/09/17/mccain-called-for-reform-of-freddie-mac-and-fannie-mae-in-may-2006/
http://www.omgili.com/omgili/%22Regulatory+Reform+Act%22/
http://themountainsage.wordpress.com/2008/09/18/bush-proposed-a-new-agency-to-oversee-freddie-mac-and-fannie-mae/
"Why cant parents teach their kids religion at home, or send them to a school that does that.I am Jewish. Do I go shoot hoops during that class? Or am I forced to believe what you believe?What about the separation of Church and state? This is America!!!"
That's just flat out hypocritical in my opinion... If this is America why should you or anyone else have any right to tell anyone else if they can pray or where they can pray? Regardless if you are Jewish, Christian, Muslim, Wiccan, agnostic, atheist with a sense of humor, etc... We even afford prisoners the right to pray as befits their religion - but if a student or teacher does it, it's somehow an affront to the spirit of the Constitution? O_o
A person praying isn't forcing you to do anything, let alone forcing you to believe something. And silent personal prayer isn't disruptive, so it's silly to compare it to 'shooting hoops' during a class. And Separation of Church and State simply shouldn't have anything to do with personal decisions to pray or not, in public or not.
Opposed to government mandated participation in prayer? Fine - so am I (although I've never experienced it occurring personally). But that's a different issue than the over-reacted complete banning of prayer/religion in public areas because a minority don't want to be offended by the site of someone praying or seeing a religious symbol somewhere.
Sorry for the rant, but since it was brought up...
As far as the whole Republicans are evil thing goes though: *yawn*. I'll just be glad when the election is over. And in some ways I hope it's a Democrat just so the country can get back to distrusting all politicians equally again, regardless of their party. =D
That's just flat out hypocritical in my opinion... If this is America why should you or anyone else have any right to tell anyone else if they can pray or where they can pray? Regardless if you are Jewish, Christian, Muslim, Wiccan, agnostic, atheist with a sense of humor, etc... We even afford prisoners the right to pray as befits their religion - but if a student or teacher does it, it's somehow an affront to the spirit of the Constitution? O_o
A person praying isn't forcing you to do anything, let alone forcing you to believe something. And silent personal prayer isn't disruptive, so it's silly to compare it to 'shooting hoops' during a class. And Separation of Church and State simply shouldn't have anything to do with personal decisions to pray or not, in public or not.
Opposed to government mandated participation in prayer? Fine - so am I (although I've never experienced it occurring personally). But that's a different issue than the over-reacted complete banning of prayer/religion in public areas because a minority don't want to be offended by the site of someone praying or seeing a religious symbol somewhere.
Sorry for the rant, but since it was brought up...
As far as the whole Republicans are evil thing goes though: *yawn*. I'll just be glad when the election is over. And in some ways I hope it's a Democrat just so the country can get back to distrusting all politicians equally again, regardless of their party. =D
Cant wait for the debates.......i am peein my pants.....
Sterling......Omg ! you are cracking me up !!!
nauty........
ps....i will mail it in......i already registered Democrat......:-))
Sterling......Omg ! you are cracking me up !!!
nauty........
ps....i will mail it in......i already registered Democrat......:-))
REGESTER, Nauty- Independent or whatever. No matter what, you will get to vote! And you have time and the debates ahead to help you decide ( and of course all of us LOL!)
Huh, you guys are killing me......dang it !!
I am so confused.......I got my registration in the mail.....I dont know what I am going to do........HELP !!!!!
N~a~u~t~y~~~~~~~
I am so confused.......I got my registration in the mail.....I dont know what I am going to do........HELP !!!!!
N~a~u~t~y~~~~~~~
I agree Mary, that's what I said above in my earlier post. However, I remember Bush being frustrated with his own party during those years too. Just because their was a Republican held congress doesn't mean he was able to get it accomplished. That's why I blame both sides.
5 out of the 7 years you listed above, we had a republican congress and a republican president. So why didn't this get done then ? hmmmm makes ya wonder.
The separation of Church and State is simply so that the Church does not control the State and the State does not control the Church. It does not mean we cannot have prayer in any government building!
I didn't say that religion had to be taught at school, what I was saying is that most people wanted prayer to be allowed in school (whatever the religion was - even just allowing kids a chance to lower their head and pray how they like) but nobody fought it. I probably shouldn't have said "christian" because I know people of different religions (including some atheists) who wanted the kids to at least be allowed to lower their head in a moment of prayer or meditation, whatever they chose. But the majority kept their mouths shut! So, kids are not even allowed to lower their heads and say a private prayer before a test without getting in trouble! How sad is that? I was only using that as an example of how things happen if we don't stay involved.
Why cant parents teach their kids religion at home, or send them to a school that does that.I am Jewish. Do I go shoot hoops during that class? Or am I forced to believe what you believe?What about the separation of Church and state? This is America!!!
This has nothing to do with the situation today?
“First, we need more disclosure and accountability in the housing market." To achieve that, Obama proposed establishing “a federal definition of mortgage fraud” and “a Home Score system that would create a simplified, standardized metric for home mortgages.”
Secondly, he said there needed to be greater oversight of rating agencies which in the past, have left conflicts of interest cloud their rating of businesses, like Enron.
Come on Paul, It has a little bit to do with it.
If I say this is Clintons Brothers fault, will you please tell Utah the truth, that bush would have never signed a bill regulating the financial markets.
Sterling:
No, I do not work the RNC! LOL!!!! I am actually an independent and honestly have been disillusioned with both parties! I honestly believe that both parties are at fault. I believe the Republicans had their own agendas and so have the Democrats. We have allowed our politicians to become so greedy that we're now having to pay for not paying attention! Too many people sit back and don't vote or speak their opinions and that's how this happens. I'm talking about both sides of the spectrum. I know many people who are angry with our choices and so I say did you vote in the primaries and their answers are "No!" I then tell them they have no right complaining now! These are people who are from various party lines. The media reported that 67% of the people were unhappy with their choices between Obama and McCain - how much you want to bet it's because people chose not to vote in the primaries and now they are not happy. Unbelievable! None of my choices are on the ticket, but at least I gave one of them my vote!
I know not everyone in this country are christian. But, a poll came back that about 82% of the country are christians. How did prayer get taken out of schools? Everyone sits back and complains about it, but where were they when this was happening. Nowhere - because they didn't want to get involved they thought someone else would do it! I believe people have been apathetic not matter what your beliefs are and so the people of this country are just as much to blame. They haven't written to their congressmen and Senators enough. They haven't fought hard enough. They have become so lazy and just expect everything will work out. So, no matter what we believe, we NEED to stand up and be heard. And, unfortunately, the American people have NOT done that!!!! Just a small few of us and who is going to listen to just the few! It's the many we need to set a fire under their butts. I don't care whether you are a true democrat or republican - the only way we can have balance in this country is for checks and balances and for ALL OF US to get involved.
It drives me nuts!
You and I have very different takes on what's happened. I respect you for your opinions, but I have very strong opinions going the opposite way. I happen to believe that Bush would NOT have vetoed such regulation since he was telling them since 2001 that it needed to be done!!!
When I first heard of Obama and saw the excitement around him, I started to get excited. I also was excited to see a black man become our next president. I was hopeful that he was the guy I wanted. I started to get so excited about him. But, then I started reading anything and everything I could and found a lot of information about him that started to make me very nervous. I found so much information about him, that I could NOT vote for him in the primaries. So, now I have to choose between two men who I do not really want as my next president. I almost feel like I have to choose between the lesser of two evils (sort of speak).
So, now I'm reading everything I can get my hands on. I'm finding out a lot about both men. I'm preparing another post that explains myself more.
Either way, I hope you can respect that I am an honest, hardworking American who is at least researching and making an informed decision whether you agree with me or not!
No, I do not work the RNC! LOL!!!! I am actually an independent and honestly have been disillusioned with both parties! I honestly believe that both parties are at fault. I believe the Republicans had their own agendas and so have the Democrats. We have allowed our politicians to become so greedy that we're now having to pay for not paying attention! Too many people sit back and don't vote or speak their opinions and that's how this happens. I'm talking about both sides of the spectrum. I know many people who are angry with our choices and so I say did you vote in the primaries and their answers are "No!" I then tell them they have no right complaining now! These are people who are from various party lines. The media reported that 67% of the people were unhappy with their choices between Obama and McCain - how much you want to bet it's because people chose not to vote in the primaries and now they are not happy. Unbelievable! None of my choices are on the ticket, but at least I gave one of them my vote!
I know not everyone in this country are christian. But, a poll came back that about 82% of the country are christians. How did prayer get taken out of schools? Everyone sits back and complains about it, but where were they when this was happening. Nowhere - because they didn't want to get involved they thought someone else would do it! I believe people have been apathetic not matter what your beliefs are and so the people of this country are just as much to blame. They haven't written to their congressmen and Senators enough. They haven't fought hard enough. They have become so lazy and just expect everything will work out. So, no matter what we believe, we NEED to stand up and be heard. And, unfortunately, the American people have NOT done that!!!! Just a small few of us and who is going to listen to just the few! It's the many we need to set a fire under their butts. I don't care whether you are a true democrat or republican - the only way we can have balance in this country is for checks and balances and for ALL OF US to get involved.
It drives me nuts!
You and I have very different takes on what's happened. I respect you for your opinions, but I have very strong opinions going the opposite way. I happen to believe that Bush would NOT have vetoed such regulation since he was telling them since 2001 that it needed to be done!!!
When I first heard of Obama and saw the excitement around him, I started to get excited. I also was excited to see a black man become our next president. I was hopeful that he was the guy I wanted. I started to get so excited about him. But, then I started reading anything and everything I could and found a lot of information about him that started to make me very nervous. I found so much information about him, that I could NOT vote for him in the primaries. So, now I have to choose between two men who I do not really want as my next president. I almost feel like I have to choose between the lesser of two evils (sort of speak).
So, now I'm reading everything I can get my hands on. I'm finding out a lot about both men. I'm preparing another post that explains myself more.
Either way, I hope you can respect that I am an honest, hardworking American who is at least researching and making an informed decision whether you agree with me or not!
http://www.observer.com/2007/obama-speaks-nasdaq
There you go. Plus you can google 20 other takes on the meeting.
There you go. Plus you can google 20 other takes on the meeting.
ok sterling, i take the bait with a smile. :-) We can talk about architects and point fingers, but EVERYONE is responsible for this one. No one is off the hook. The question is how to move forward. Too much regulation and no loans for anyone w good credit. The the pendulum will swing the other direction. Provide me the link about the Nasdaq warning, would like to read it. :-P
Do you work for the RNC? Honest, I am not kidding. Phil Grahm Is the architect of de regulation of the financial markets. Bush is against any regulation. McCain has voted for de regulation of the financial markets for 26 years. What are you talking about? The Democrats have had a 1 seat majority in the Senate for 20 months. Bush would have vetoed anything they would have proposed. Obama spoke at Nasdaq and warned them of this in 2006....
And I know Paul would be posting a few paragraphs if he were not feeling a little guilty.
ahahahahhahahahahahah
And I know Paul would be posting a few paragraphs if he were not feeling a little guilty.
ahahahahhahahahahahah
Wouldn't that have been up to Congress? They would have had to have prepared a bill that would have put some regulations out there. That's why the Bush administration was warning them. Remember, this was both sides because in 2001 the Republicans controlled and now the Dems do. So, I say they are all at fault. If they would have listened all along - this mess could have been avoided!
Also, it's been coming out that the reason AIG needed help was because they had a lot of money in Fannie Mae and Freddie Mac. I haven't been able to substantiate that though.
Also, it's been coming out that the reason AIG needed help was because they had a lot of money in Fannie Mae and Freddie Mac. I haven't been able to substantiate that though.
Evidence shows both parties knew about it prior. I just can't imagine anyone not speaking up. Maybe they thought it would go away. Duh! Both sides need a slap in the @ss. What a bloody mess.
Well why the he ll didn't he do something about it!? Or delegate it to someone who had enough sense to?.........DS
You have got to be kidding me man~~~~~~~~~~~~~~~~~~~~
Bush and the Republicans are directly responsible for this economic melt down.
Lets hurry up and bush through a bail out before the election.
Same as the run up to the war.
Same as pushing through the Patriot Act.
Bush=McCain= Complete melt down
Bush and the Republicans are directly responsible for this economic melt down.
Lets hurry up and bush through a bail out before the election.
Same as the run up to the war.
Same as pushing through the Patriot Act.
Bush=McCain= Complete melt down
2004
February: The President's FY05 Budget again highlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: "The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore…should be replaced with a new strengthened regulator." (2005 Budget Analytic Perspectives, pg. 83)
February: CEA Chairman Mankiw cautions Congress to "not take [the financial market's] strength for granted." Again, the call from the Administration was to reduce this risk by "ensuring that the housing GSEs are overseen by an effective regulator." (N. Gregory Mankiw, Op-Ed, "Keeping Fannie And Freddie's House In Order," Financial Times, 2/24/04)
June: Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed by the GSEs and called for reform, saying "We do not have a world-class system of supervision of the housing government sponsored enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve demands the best in supervision to ensure the long-term vitality of that system. Therefore, the Administration has called for a new, first class, regulatory supervisor for the three housing GSEs: Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System." (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04)
2005
April: Treasury Secretary John Snow repeats his call for GSE reform, saying "Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-measures will only exacerbate the risks to our financial system." (Secretary John W. Snow, "Testimony Before The U.S. House Financial Services Committee," 4/13/05)
2007
July: Two Bear Stearns hedge funds invested in mortgage securities collapse.
August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying "first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options." (President George W. Bush, Press Conference, The White House, 8/9/07)
September: RealtyTrac announces foreclosure filings up 243,000 in August – up 115 percent from the year before.
September: Single-family existing home sales decreases 7.5 percent from the previous month – the lowest level in nine years. Median sale price of existing homes fell six percent from the year before.
December: President Bush again warns Congress of the need to pass legislation reforming GSEs, saying "These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. So I've called on Congress to pass legislation that strengthens independent regulation of the GSEs – and ensures they focus on their important housing mission. The GSE reform bill passed by the House earlier this year is a good start. But the Senate has not acted. And the United States Senate needs to pass this legislation soon." (President George W. Bush, Discusses Housing, The White House, 12/6/07)
2008
January: Bank of America announces it will buy Countrywide.
January: Citigroup announces mortgage portfolio lost $18.1 billion in value.
February: Assistant Secretary David Nason reiterates the urgency of reforms, says "A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully." (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08)
March: Bear Stearns announces it will sell itself to JPMorgan Chase.
March: President Bush calls on Congress to take action and "move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages." (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08)
April: President Bush urges Congress to pass the much needed legislation and "modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by … helping people stay in their homes." (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08)
May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further.
"Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans." (President George W. Bush, Radio Address, 5/3/08)
"[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator." (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08)
Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans." (President George W. Bush, Radio Address, 5/31/08)
June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying "we need to pass legislation to reform Fannie Mae and Freddie Mac." (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08)
July: Congress heeds the President's call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing.
(White House Press Release)
February: The President's FY05 Budget again highlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: "The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore…should be replaced with a new strengthened regulator." (2005 Budget Analytic Perspectives, pg. 83)
February: CEA Chairman Mankiw cautions Congress to "not take [the financial market's] strength for granted." Again, the call from the Administration was to reduce this risk by "ensuring that the housing GSEs are overseen by an effective regulator." (N. Gregory Mankiw, Op-Ed, "Keeping Fannie And Freddie's House In Order," Financial Times, 2/24/04)
June: Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed by the GSEs and called for reform, saying "We do not have a world-class system of supervision of the housing government sponsored enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve demands the best in supervision to ensure the long-term vitality of that system. Therefore, the Administration has called for a new, first class, regulatory supervisor for the three housing GSEs: Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System." (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04)
2005
April: Treasury Secretary John Snow repeats his call for GSE reform, saying "Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-measures will only exacerbate the risks to our financial system." (Secretary John W. Snow, "Testimony Before The U.S. House Financial Services Committee," 4/13/05)
2007
July: Two Bear Stearns hedge funds invested in mortgage securities collapse.
August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying "first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options." (President George W. Bush, Press Conference, The White House, 8/9/07)
September: RealtyTrac announces foreclosure filings up 243,000 in August – up 115 percent from the year before.
September: Single-family existing home sales decreases 7.5 percent from the previous month – the lowest level in nine years. Median sale price of existing homes fell six percent from the year before.
December: President Bush again warns Congress of the need to pass legislation reforming GSEs, saying "These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. So I've called on Congress to pass legislation that strengthens independent regulation of the GSEs – and ensures they focus on their important housing mission. The GSE reform bill passed by the House earlier this year is a good start. But the Senate has not acted. And the United States Senate needs to pass this legislation soon." (President George W. Bush, Discusses Housing, The White House, 12/6/07)
2008
January: Bank of America announces it will buy Countrywide.
January: Citigroup announces mortgage portfolio lost $18.1 billion in value.
February: Assistant Secretary David Nason reiterates the urgency of reforms, says "A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully." (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08)
March: Bear Stearns announces it will sell itself to JPMorgan Chase.
March: President Bush calls on Congress to take action and "move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages." (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08)
April: President Bush urges Congress to pass the much needed legislation and "modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by … helping people stay in their homes." (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08)
May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further.
"Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans." (President George W. Bush, Radio Address, 5/3/08)
"[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator." (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08)
Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans." (President George W. Bush, Radio Address, 5/31/08)
June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying "we need to pass legislation to reform Fannie Mae and Freddie Mac." (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08)
July: Congress heeds the President's call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing.
(White House Press Release)
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