Shameful—Congress refuses hearings on Freddie Mac and Fannie Mae

During the Presidential Debate at Belmont University (Tenn.), Sen. John McCain (R-Ariz.) called Fannie Mae and Freddie Mac the “catalyst” for the economic meltdown. It’s my opinion McCain is right and Congress is abandoning its duty in investigating these Government Sponsored Enterprises (GSEs). I believe Congress is doing that purely for political purposes—otherwise why would they start hearings with corporations before cleaning up the US government body that created this problem in the first place? And not much has changed; it's amazing lenders haven't learned a thing. Watch the video at the end of this post and a light bulb should go off in even the most basic brains.

Is Congress denying hearings about  the GSEs because Congress is led by the incumbent party of Sen. Barack Obama (D-Ill.)?

Since the bailout, not much has changed in mortgage lending. Banks are still offering loans with no validation of income. Banks are still offering mortgages for 120 percent of your home’s value. Organizations like ACORN have filtered this money for years and there is still a means for them to continue doing so in the bailout bill. McCain’s idea to purchase the mortgages is a fairly good one—if the mortgages are held by families who truly have a problem. Those families I don’t mind helping with my tax dollars.

But others built multi-family complexes—basically investments—with this money. Still others borrowed far more than the home was worth. Still others committed fraud, as evidenced by a statement at the FBI website:  “The FBI’s Criminal Division has arrested 1000 suspects and targeted 180 criminal enterprises since 2004. We targeted those lenders and buyers involved in multiple frauds or cases where the profits went to drug crews, gangs or organized crime.” Read the stories listed under ‘References’ below and you will see how irresponsible government has been with our money.

Call or email your representative and insist on immediate hearings. Media is reporting Rep. Nancy Pelosi (D-Calif.) wants to reconvene for another bailout bill—she’s calling it a $150 billion “stimulus” bill.

There’s more to this than meets the eye, beginning with the letter by Sen. Charles Schumer (D-N.Y.) leaked to media—he wrote to IndyMac about the bank’s solvency. Hearings should be held on the GSEs immediately because banks are still offering easy money to people who are an easy target for predators—Congress’s shameful reminder this problem has not been addressed and it will not be until hearings are held to determine a viable means of going forward.