As Congress has remained locked in an ideological paralysis for the last eight years, Fannie Mae has undertaken a radical transformation accomplishing everything our hopeless leaders hoped to achieve through comprehensive housing finance reform. I sit speechless as I evaluate the progress we have made on all fronts of this epic battle. Fannie Mae’s employees under Tim Mayopoulos’s have made extraordinary progress in spite of the fact that our leaders have done nothing but relentlessly bash and mislead the public about them and the company they represent.Since 2008 they have quietly worked to save our country from the destruction that Wall St. unleashed on our economy with their financial gimmicks and trickery.
The “Failed Model” Argument No Longer Bares Any Resemblance To Reality
This overview lays out the progress Fannie has made to transform their company:
“We have fundamentally changed the way we do business in ways that make Fannie Mae and housing finance stronger.
Over the past seven years, Fannie Mae has not only made changes to our business; we have changed our business model. These changes involve the types of loans that we finance as well as what we do with the loans once they come through our door. Together, these changes make the company stronger, provide more protection to taxpayers, and expand the role of private capital in the housing finance system.”
“The status quo is not for us.
At Fannie Mae, we know building a better housing system starts at our front door.We’re continually improving our company, streamlining the way we work, and anticipating tomorrow’s challenges. We are driving important changes in housing finance. It’s about building for the future. We are a vastly improved company now than we were a few years ago. We have fundamentally changed the way we do business, in ways that make both Fannie Mae and America’s housing safer and better, while reducing risk for taxpayers. Today, the majority of our revenue comes from our guaranty business rather than from our retained investment
portfolio. This source of revenue is more stable, reliable, and predictable.”
Fannie Mae has accomplished everything our elected leaders hoped to accomplish through GSE reform legislation. I suggest everyone read the more comprehensive report that can be found here:
Profiles In Courage: FHFA Director Watt And CEO Mayopoulos
The remarkable progress made at Fannie was made possible by the courageous leadership of FHFA Director Mel Watt and Fannie Mae’s CEO Tim Mayopolous. At this moment, Director Watt is faced with some critical decisions, and we must be prepared for the ramifications that some of these decisions may bring upon us.Although we have made incredible progress on virtually every front of this war, the fact remains that the dwindling capital at the GSEs threatens to end the trust fund payments that just began. The drastically low capital also hinders the GSEs ability to fulfill their mandates which ensure some of our most vulnerable citizens have the opportunity to own their homes.This is key to break the cycle of poverty that they find themselves trapped in.
I only ask that we do not allow impatience to cause us to take actions that may set us back from our ultimate goals. Serious consideration must be given to both the short term and long term results that each decision has to offer. I have much more to share with everyone and will try to do so in the next few days. I have watched as our opponents grow more desperate as their scheme seems to slip out of their grasp more and more every day. It is now inevitable that ultimately we will achieve major legal victories in our courts. We must constantly adjust our strategies to reflect the advancing fronts.It is due to the hard work of many of you reading this that we have turned the tide and sit in a position of strength. We will easily win a war of attrition, but I will understand if others feel that a major offensive is in order.
I would like to ask respectfully that the hedge funds and those working on their behalf refrain from pandering to the Black community.They already know what is at stake and what needs to be done, and it could be the kiss of death if they are falsely portrayed as puppets of the hedge funds. They have far more at stake in this battle than any other group that is involved.
Keep The Faith