Fannie Mae and Freddie Mac continue to play a dominant role in America's housing market, in spite of the fact they have virtually no capital and have operated for almost eight years as wards of the state. Historically, their status as government-sponsored enterprises has let them run at unsafe leverage and bypass the regulatory controls applied to other large financial institutions. The taxpayers had to bail them out. Numerous reform proposals have come and gone, but Fannie and Freddie are still putting taxpayers at risk.
Join R Street and Rep. Mick Mulvaney, R-S.C., for a discussion of what firm and straightforward steps Congress can take now to put the GSEs on a better path. Rep. Mulvaney will discuss his proposed legislation, H.R. 4913, the Housing Finance Restructuring Act of 2016, which requires the GSEs to accumulate capital to protect against loss and sets prudent capital requirements.
Rep. Mulvaney will be followed by a panel of experts examining the bill and the reforms Congress should pursue. Lunch will be served.