Letter sent by Rep. Mike Capuano to members of Congress seeking support for HR 1036. Love the “Thank you letter”
From: The Honorable Michael E. Capuano
Sent By: gira.bose@mail.house.gov
Bill: H.R. 1036
Date: 3/18/2015
DID YOU SEE THE THANK YOU LETTER
FROM THE ADMINISTRATION
ABOUT FANNIE and FREDDIE?
Dear Colleague:
Ok, there is no Thank You letter. But if there were one it might read like this …
Dear Member of Congress:
Thank you for allowing the Federal government to use Fannie Mae and Freddie Mac as piggybanks. Since President Bush took control of these agencies they have paid taxpayers about $40 BILLION more than they borrowed. That money has gone directly to fund general government and we are not even close to done yet – we estimate they will generate another $150 BILLION of profit over the next few years and we plan on spending that too.
I’m sure you recall that President Bush had to lend Fannie and Freddie $187.5 Billion a few years ago because they engaged in the same risky investment strategy that many on Wall Street did – and lost. Many of you were very upset at the loan from taxpayers and demanded it be paid back. Well, the full amount of the original loan has been paid PLUS another $40 billion on top of that – a 20% return on investment!
But here’s the best part – we have not allowed one penny of the $228 Billion paid to date to count toward principal reduction – so they still “owe” the original amount of $187.5 Billion. And the cherry on top – that money hasn’t even gone to build up their capital reserve or reduce fees on homeowners – every penny of this “sweep” has gone directly to fund general government!
Rest assured we plan on milking this cow as long as we can – we have no intention of letting them pay down a penny of the principal. There is no reason to stop – no one really thinks Congress will actually fix Fannie and Freddie, and the only complaints we’ve heard are from that pesky Mike Capuano. He filed HR 1036 to make us stop “sweeping” Fannie and Freddie profits to fund general government. Please, do NOT sign onto that bill, it would close down the piggybank and maybe even force serious consideration of fixing Fannie and Freddie.
Thanks again – let the good times keep rolling.
Sincerely,
Your friend in conservatorship.
Now don’t forget – this letter is a fake. But I hope it made the point – you should co-sponsor HR 1036. This bill would stop the sweep of Fannie and Freddie profits, possibly force GSE reform onto our agenda, allow Fannie and Freddie to build up a capital reserve, fund the Housing Trust Fund, and reduce excessive fees paid by middle-class homeowners.
If you would like to sign onto HR 1036 or if you have any questions about the bill, please contact Gira Bose in my office at gira.bose@mail.house.gov or at 202-225-5111.
Sincerely,
Michael E. Capuano
MEMBER OF CONGRESS