A recent survey released by the American Action Forum revealed that Americans have a negative perception of mortgage giants Federal National Mortgage Association (OTCBB:FNMA)/ Fannie Mae (OTCBB:FNMA) and Federal Home Loan Mortgage Corp/ Freddie Mac (OTCBB:FMCC).
Based on the survey, the percentage of Americans with unfavorable opinions regarding Federal National Mortgage Association/ Fannie Mae (OTCBB:FNMA) and Federal Home Loan Mortgage Corp/ Freddie Mac (OTCBB:FMCC) is 52% while 20% of the respondents have positive views after surviving the 2008 financial crisis.
Americans Demand More Accountability
According to the study, a majority of Americans (52%) expressed that their greatest concern was the lack of accountability from banks and Wall Street. The respondents are worried that Wall Street banks are so big and if they fail, taxpayers might end up providing another bailout. A small margin of voters (+11) remained negative about the bailouts.
The survey also found that respondents were divided when it comes to the effectiveness of banking regulations. Data showed that 38% of American voters believe that the recent banking regulations will do more harm, while 41% believe changes will be helpful. American Action Forum opined that the average voter has little knowledge about banking regulations, and they were unable to provide opinion regarding the issue.
In addition, the survey also showed that 52% of Americans are in favor of the proposal to phase out Federal National Mortgage Association/ Fannie Mae (OTCBB:FNMA) and Federal Home Loan Mortgage Corp/ Freddie Mac (OTCBB:FMCC). According to American Action Forum, when respondents are informed that the mortgage giants played a significant role in the housing bubble and received almost $200 billion in bailout money, the percentage of respondents against the mortgage giants increased to 59%. A majority of the voters said future bailout is unacceptable.
In a statement, Douglas Holtz-Eakin, president of American Action Forum said, “We have known for years that Fannie Mae and Freddie Mac played central roles in the 2008 financial crisis and the right policy course is to be phase them out. It is fascinating to see that, across party lines, the public also shares this view.”
Fannie and Freddie Have Been Toxic For Years
On the other hand, Wes Anderson of On Message Inc commented, “The debate over the future of Fannie and Freddie starts with both organizations at near toxic levels of negativity among the voters. Even a majority of Democrat voters are negative toward both entities. Voter opinions about Fannie and Freddie and their future all but collapse when reminded about the massive nature of taxpayer bailouts they received.”
In a previous report, a group of Republican House Representatives proposed to wind down Federal National Mortgage Association/ Fannie Mae (OTCBB:FNMA) and Federal Home Loan Mortgage Corp/ Freddie Mac (OTCBB:FMCC) over the next five years.