"Emancipate yourself from mental slavery, none but ourselves can free our mind.” - Bob Marley

Tuesday, September 30, 2008

Right Wingnut Myths 2: The Democrats Prevented GSE Regulation

The ignorant right has been huffing glue again. They are screaming about how many times the Democrats defeated plans to regulate Freddie Mac and Fannie Mae.

Newsflash: The GSEs have been under Executive Branch Regulation since at least 1992.

Until Paulson put them in conservatorship, the GSEs were regulated by HUD and OFHEO - both part of the Executive Branch.

From OFHEOs FAQ:

How is oversight of Fannie Mae and Freddie Mac divided between OFHEO and HUD?
The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 created a regulatory oversight structure for the housing government-sponsored enterprises of Fannie Mae and Freddie Mac. The regulatory oversight was divided to address two functions – their financial safety and soundness and their affordable housing mission. The financial safety and soundness regulation is vested in the Office of Federal Housing Enterprise Oversight (OFHEO). OFHEO implements, monitors and enforces capital standards for Freddie Mac and Fannie Mae.
...

Effective January 1, 2005, HUD established new and increasing affordable housing goal levels for the GSEs for the years 2005 through 2008. These goals require that a certain percentage of the mortgages purchased by Fannie Mae and Freddie Mac support financing for housing low – and moderate – income families.

January 1, 2005:

Republican President and Executive Branch: Check!

Republican House and Senate: Check!

One more right-wing myth explodes upon impact with the facts.




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About Me

I'm a 57 year old geek. I voted Democratic for 20 years, because I disliked the Republicans more. But now, nobody really speaks for me. I'm for Guns, for more correct government regulation of the financial world, against illegal immigration and amnesty. (in 2008 I ended up voting Republican - too many questions about Obama, and voting against anybody who voted for TARP 1.) In 2010 I voted a stright republican ticket because the Democrats have completely lost their minds.