U.S. lawmakers called for cancellation of the two mortgage lending institutions
AP Chairman of the House Financial Institutions Committee, Democrat Barney Frank, 17, said the federal government should abolish the two mortgage finance institutions, "Fannie Mae" and "Freddie Mac" rather than implementation of the reforms on both.
Frank the same day Fox Business News Network interview, said the Federal Housing Administration should be entirely self-financing; a new body should replace the "two rooms" to play a subsidized housing market functions.
he said: "The 'two rooms' should be banned, the only question is who will replace them."
"a product of public-private hybrid" should disappear
Frank said: "The public-private hybrid product should be gone ... ... If we want to subsidize the housing market can be done fair and square, the subsidies included in the budget."
asked whether the Government should continue to mortgage loan market to provide a guarantee, Frank said: "If there is security, it must be self-financing by the beneficiaries."
Congress in July by the financial regulatory reform bill, did not solve the "two rooms" high operating costs and other issues, was highly critical of Republicans. Geithner said earlier this month, he plans to come up with next January before a "two rooms" comprehensive reform proposals.
"two rooms" have reported a huge second quarter losses. The two institutions from April 2009 onwards from the federal government funds a total of 148.3 billion U.S. dollars extraction; its shares last month from New York and Chicago Stock Exchange delisting, go to the OTC market.
should eliminate the "taken for granted the concept of"
Frank, 17, criticized the current public policy in the interview to encourage people to access home ownership at all costs, direct challenge to "home ownership" and "the United States Dream. "
"Frankly speaking, in this society, it was for economic and social reasons can not or should not have housing." Frank said, "In particular, we should eliminate the concept of the assumptions that the Government should make every Personal access to home ownership. But public policy has been too much to encourage people to get home ownership. "
" no consensus on the new mortgage market, tend to fundamental reform "
- United States finances Minister Geithner
AP Frank made the remarks after the U.S. Treasury Secretary Timothy Geithner attended the meeting in Washington to listen to the real estate leader for the mortgage market reforms offer advice and suggestions. Geithner said the parties on how to design a new system of housing mortgage loan market is not "clear consensus", but "the government will tend to those who called for fundamental change."
He said the current government do not agree with the "two rooms" have been restored to the state before the previous government took over, that side from private competitors to grab market share, one side has a government umbrella imagined.
However, Geithner support the Government in a way guaranteed mortgage loans, while the property market in the larger context of subsidies, but that should ensure that "any risk of loss covered by government guarantees should be clearly the price the design should minimize the risk of the taxpayer. "
analysis company Moody's analyst Mark Zandi, chief economist at the Conference on the same day. "The government should be in the property market is clearly a very important role to play ... ... but I think now the real estate market subsidy is essential to reduce subsidies over ... ...." He said.
"two rooms" file
"two rooms" set up in the 30s of last century "Great Depression" period, the original in order to concentrate and sales of traditional mortgage-based business.
"two room" was part of the federal government to support private enterprises, up to the brink of bankruptcy in 2008 before former President George W · by the Bush administration took over.
According to statistics, the total amount of 11 trillion U.S. mortgage market, more than half owned by the "two rooms" owned or guaranteed.
(Xinhua)
