I must say I am still shocked by a very frank discussion I had with House Democratic Caucus Chair John Larson (D-Conn.) regarding Fannie and Freddie on Friday night. I expected to hear the typical talking points we have all grown accustomed but he started right off by confidently stating that “Fannie and Freddie aren’t going anywhere”.He cited the fact that He couldn’t even get the bipartisan resolution written with Rep. Peter King NY to honor Pope Francis passed for his work towards social justice due to his reputation among Republicans as being “too liberal,”. He said “if that can’t pass GSE reform doesn’t stand a chance” He assured me that “most democratic members on the House Financial Services committee are solidly behind Fannie and Freddie”.I also shared Nick Isbell’s letter to Obama which he read in its entirety, parts out loud. Representative Larson agreed that it is well proven that Fannie and Freddie did not cause the housing crisis and the recent bank settlements further vindicated Fannie and Freddie. He stated “the elimination of Fannie and Freddie is part of a larger right-wing agenda which also includes getting rid of the import export bank and other government agencies.” As he was leaving I asked if he minded if I shared his comments publicly or should we not rock the boat with the reform measures still in the committees ? He said he was fine with me sharing them and as we parted ways he reminded me to “Keep the Faith”. It was great to see there are still a few honest politicians in DC not afraid to share their true beliefs. John knows what private capital would truly mean for the mortgage market, its not like this hasn’t been tried before.
Rep. John Larson confirmed much of what I have been sharing with you. It was only a matter of time before democrats began to speak up on behalf of Fannie and Freddie now that it is so clear that they not only did not cause the crisis, but they were there to save the day. I hope we will be hearing from more in the coming days now that John has broken the ice. The tide is turning in a big way. Keep the Faith!