2015: Schweikert Voted Against The FY 2016 Budget Resolution Which Recommends Winding Down And The Eventual Elimination Of Fannie Mae And Freddie Mac. In March 2015, Schweikert voted against the FY 2016 budget resolution which recommends the eventual elimination of Fannie Mae and Freddie Mac. According to Congressional Quarterly, "The budget recommends winding down the government guarantees, ending government subsidies and eventually eliminating Fannie Mae and Freddie Mac, the two government-sponsored enterprises (GSEs) that securitize mortgages and are currently in government conservatorship." The vote was on the budget resolution. The House passed the resolution 228 to 199. The budget resolution died in the Senate, but a similar concurrent resolution did pass both Houses. [House Vote 142, 3/25/15; Congressional Quarterly, 3/23/15; Congressional Actions, S. Con. Res. 11; Congressional Actions, H. Con. Res. 27]
2015: Schweikert Voted Against A FY 2016 Budget Resolution Which Recommends Winding Down And Eventually Eliminating Of Fannie Mae And Freddie Mac. In March 2015, Schweikert voted against a FY 2016 Budget Resolution which recommends the eventual elimination of Fannie Mae and Freddie Mac. According to Congressional Quarterly, "The budget recommends winding down the government guarantees, ending government subsidies and eventually eliminating Fannie Mae and Freddie Mac, the two government-sponsored enterprises (GSEs) that securitize mortgages and are currently in government conservatorship." The vote was on the adopting the substitute amendment. The House passed the amendment 219 to 208 and later passed the budget resolution. The budget resolution died in the Senate, but a similar concurrent resolution did pass both Houses. [House Vote 141, 3/25/15; Congressional Quarterly, 3/23/15; Congressional Actions, S. Con. Res. 11; Congressional Actions, H. Amdt. 86; Congressional Actions, H. Con. Res. 27]
2015: Schweikert Voted For A FY 2016 Budget Resolution Which Recommends Winding Down And Eventually Eliminating Fannie Mae And Freddie Mac. In March 2015, Schweikert voted for a FY 2016 Budget Resolution which recommends the eventual elimination of Fannie Mae and Freddie Mac. According to Congressional Quarterly, "The budget recommends winding down the government guarantees, ending government subsidies and eventually eliminating Fannie Mae and Freddie Mac, the two government-sponsored enterprises (GSEs) that securitize mortgages and are currently in government conservatorship." The vote was on the adopting the substitute amendment. The House rejected the amendment 105 to 319. The House later adopted a substitute amendment identical to this except for a change in defense spending and then later passed the budget resolution. The budget resolution died in the Senate, but a similar concurrent resolution did pass both Houses. [House Vote 140, 3/25/15; Congressional Quarterly, 3/23/15; Congressional Quarterly, 3/30/15; Congressional Actions, S. Con. Res. 11; Congressional Actions, H. Amdt. 85; Congressional Actions, H. Con. Res. 27]
2015: Schweikert Voted To Repeal Fannie Mae And Freddie Mac's Federal Chargers As Part Of The FY 2016 Republican Study Committee Budget Resolution. In March 2015, Schweikert voted for repealing Fannie Mae and Freddie Mac's federal chargers. According to the Republican Study Committee, "This budget recommends a repeal of Fannie Mae and Freddie Mae's federal charters." The underlying budget resolution would have, according to Congressional Quarterly, "provide[d] for $2.804 trillion in new budget authority in fiscal 2016, not including off-budget accounts. The substitute would call for reducing spending by $7.1 trillion over 10 years compared to the Congressional Budget Office baseline." The vote was on the substitute amendment to a Budget Resolution. The House rejected the amendment by a vote of 132 to 294. [House Vote 138, 3/25/15; Republican Study Committee, FY 2016 Budget; Congressional Quarterly, 3/25/15; Congress.gov, H. Amdt. 83; Congressional Actions, H. Con. Res. 27]
2014: Schweikert Voted To Eliminate Fannie Mae And Freddie Mac, As Part Of Rep. Paul Ryan's Budget Proposal. In April 2014, Schweikert voted for House Budget Committee Chairman Paul Ryan's (R-WI) proposed budget resolution covering fiscal years 2015 to 2024, which, according to the House Budget Committee's Fiscal Year 2015 "Path to Prosperity," "Privatize the Business of Government-Controlled Mortgage Giants Fannie Mae and Freddie Mac. [...] Since Treasury stepped in to provide additional bailout funds, Fannie and Freddie's dominance in the mortgage market has grown. In 2013, the GSEs accounted for 60 percent of first-lien mortgage originations, with FHA and VA backing an additional 19 percent. In 2005 and 2006, the GSE's share of first-lien originations was closer to 30 percent. Additionally, Fannie Mae, Freddie Mac, and Ginnie Mae now dominate the market for the issuance of new single-family, mortgage-backed securities with a combined 99 percent market share. This budget recommends putting an end to corporate subsidies and taxpayer bailouts in housing finance. It envisions the eventual elimination of Fannie Mae and Freddie Mac, winding down their government guarantee and ending taxpayer subsidies. In the interim, this resolution envisions removing distortions to allow an influx of private capital and advancing various measures that would bring transparency and accountability to these two government-sponsored enterprises, which could include measures described in H.R. 2767, the Protecting American Taxpayers and Homeowners Act of 2013." The House adopted the budget resolution by a vote of 219 to 205, but the Senate did not. [House Vote 177, 4/10/14; House Budget Committee, 4/1/14; Congressional Actions, H. Con. Res. 96]
Fannie Mae And Freddie Mac Were Formed By The U.S. Government To Support Lending For Homebuyers. According to the New York Times, "Fannie Mae was created as the Federal National Mortgage Association in 1938, under President Franklin Roosevelt, to ensure that mortgage lenders had sufficient money to lend to home buyers during the Depression. It has been a private corporation since 1968. Freddie Mac, which was formed as the Federal Home Loan Mortgage Corporation, is also privately held. It was formed by Congress in 1970 to support homeownership and rental housing." [New York Times, 7/12/08]
Fannie Mae And Freddy Mac Buy Mortgages From Banks Using Low Interest Funds, Leading To A Combined Guarantee Of Approximately Half Of The U.S. Mortgage Market. According to the New York Times, "Fannie Mae and Freddie Mac borrow money from debt markets, usually at a rate that's much lower than for other banks, and use that money to buy mortgages from banks. Then they either hold the mortgages in investment portfolios or resell them to investors as mortgage-backed securities. [...] Together, they own or guarantee about half of the nation's $12 trillion mortgage market." [New York Times, 7/12/08]
The Federal Government Created The Federal Housing Finance Agency Due To The 2008 Financial Crisis And Empowered The Agency To Take Over Fannie Mae And Freddie Mac; A Month Later, The Agency Did So. According to the Congressional Research Service, "The Housing and Economic Recovery Act of 2008 (P.L. 110-289), enacted July 30, 2008, provides the authority for the government's takeover of the GSEs. The act created a new GSE regulator, the Federal Housing Finance Agency (FHFA), with the authority to take control of either GSE to restore it to a sound financial condition. [...] On September 7, 2008, the FHFA established a conservatorship for Fannie and Freddie. As conservator, the FHFA has taken over the assets and assumed all the powers of the shareholders, directors, and officers. It may take any necessary action to restore the firms to a sound and solvent condition. Stockholders' voting rights are suspended during the conservatorship, and both firms' CEOs have been replaced. Dividends on common and preferred stock have been suspended, although the shares continue to trade. GSE business operations will continue as before; the conservator will delegate authority to the companies' new management to move forward. The conservatorship will end when the FHFA finds that a safe and solvent condition has been restored." [CRS Report #RS22950, 9/15/08]
2013: Schweikert Voted For Privatizing Fannie Mae and Freddie Mac As Part Of The FY 2014 Ryan Budget. In March 2013, Schweikert voted for privatizing Fannie Mae and Freddie Mac, as part of House Budget Committee Chairman Paul Ryan's (R-WI) proposed budget resolution covering fiscal years 2014 to 2023. According to the House Budget Committee, "This budget will end corporate welfare in the housing sector. It seeks to drastically decrease the market dominance of Fannie Mae and Freddie Mac by gradually ending their government guarantees and taxpayer subsidies. It also supports various ways to attract private capital into the entities' balance sheets." The resolution passed the House by a vote of 221 to 207, but died in the Senate. [House Vote 88, 3/21/13; House Budget Committee, 3/12/13; Congressional Actions, H. Con. Res. 25]
Fannie Mae And Freddie Mac Were Formed By The U.S. Government To Support Lending For Homebuyers. According to the New York Times, "Fannie Mae was created as the Federal National Mortgage Association in 1938, under President Franklin Roosevelt, to ensure that mortgage lenders had sufficient money to lend to home buyers during the Depression. It has been a private corporation since 1968. Freddie Mac, which was formed as the Federal Home Loan Mortgage Corporation, is also privately held. It was formed by Congress in 1970 to support homeownership and rental housing." [New York Times, 7/12/08]
Fannie Mae And Freddy Mac Buy Mortgages From Banks Using Low Interest Funds, Leading To A Combined Guarantee Of Approximately Half Of The U.S. Mortgage Market. According to the New York Times, "Fannie Mae and Freddie Mac borrow money from debt markets, usually at a rate that's much lower than for other banks, and use that money to buy mortgages from banks. Then they either hold the mortgages in investment portfolios or resell them to investors as mortgage-backed securities. [...] Together, they own or guarantee about half of the nation's $12 trillion mortgage market." [New York Times, 7/12/08]
The Federal Government Created The Federal Housing Finance Agency Due To The 2008 Financial Crisis And Placed Fannie Mae And Freddie Mac Into Conservatorship. According to CRS, "The Housing and Economic Recovery Act of 2008 (P.L. 110-289), enacted July 30, 2008, provides the authority for the government's takeover of the GSEs. The act created a new GSE regulator, the Federal Housing Finance Agency (FHFA), with the authority to take control of either GSE to restore it to a sound financial condition. [...] On September 7, 2008, the FHFA established a conservatorship for Fannie and Freddie. As conservator, the FHFA has taken over the assets and assumed all the powers of the shareholders, directors, and officers. It may take any necessary action to restore the firms to a sound and solvent condition. Stockholders' voting rights are suspended during the conservatorship, and both firms' CEOs have been replaced. Dividends on common and preferred stock have been suspended, although the shares continue to trade. GSE business operations will continue as before; the conservator will delegate authority to the companies' new management to move forward. The conservatorship will end when the FHFA finds that a safe and solvent condition has been restored." [CRS, 9/15/08]
2013: Schweikert Voted To Privatize Fannie Mae And Freddie Mac. In March 2013, Schweikert voted to support privatizing Fannie Mae and Freddie Mac, as part of the Republican Study Committee's proposed budget resolution covering fiscal years 2014 to 2023. According to the Republican Study Committee, "This budget recommends privatizing Fannie Mae and Freddie Mac, winding down their government guarantee, and ending taxpayer subsidies." The vote was on an amendment to the House budget resolution replacing the entire budget with the RSC's proposed budget; the amendment failed by a vote of 104 to 132 with 171 Democrats voting present. According to Congressional Quarterly, "Repeating a strategy from last year, 171 Democrats voted "present" to push Republicans to vote against the RSC plan to make sure it did not have enough support to replace the Ryan plan." [House Vote 86, 3/21/13; Republican Study Committee, 3/18/13; Congressional Quarterly, 3/25/13; Congressional Actions, H. Amdt. 35; Congressional Actions, H. Con. Res. 25]
Fannie Mae And Freddie Mac Were Formed By The U.S. Government To Support Lending For Homebuyers. According to the New York Times, "Fannie Mae was created as the Federal National Mortgage Association in 1938, under President Franklin Roosevelt, to ensure that mortgage lenders had sufficient money to lend to home buyers during the Depression. It has been a private corporation since 1968. Freddie Mac, which was formed as the Federal Home Loan Mortgage Corporation, is also privately held. It was formed by Congress in 1970 to support homeownership and rental housing." [New York Times, 7/12/08]
Fannie Mae And Freddy Mac Buy Mortgages From Banks Using Low Interest Funds, Leading To A Combined Guarantee Of Approximately Half Of The U.S. Mortgage Market. According to the New York Times, "Fannie Mae and Freddie Mac borrow money from debt markets, usually at a rate that's much lower than for other banks, and use that money to buy mortgages from banks. Then they either hold the mortgages in investment portfolios or resell them to investors as mortgage-backed securities. [...] Together, they own or guarantee about half of the nation's $12 trillion mortgage market." [New York Times, 7/12/08]
The Federal Government Created The Federal Housing Finance Agency Due To The 2008 Financial Crisis And Placed Fannie Mae And Freddie Mac Into Conservatorship. According to CRS, "The Housing and Economic Recovery Act of 2008 (P.L. 110-289), enacted July 30, 2008, provides the authority for the government's takeover of the GSEs. The act created a new GSE regulator, the Federal Housing Finance Agency (FHFA), with the authority to take control of either GSE to restore it to a sound financial condition. [...] On September 7, 2008, the FHFA established a conservatorship for Fannie and Freddie. As conservator, the FHFA has taken over the assets and assumed all the powers of the shareholders, directors, and officers. It may take any necessary action to restore the firms to a sound and solvent condition. Stockholders' voting rights are suspended during the conservatorship, and both firms' CEOs have been replaced. Dividends on common and preferred stock have been suspended, although the shares continue to trade. GSE business operations will continue as before; the conservator will delegate authority to the companies' new management to move forward. The conservatorship will end when the FHFA finds that a safe and solvent condition has been restored." [CRS, 9/15/08]