Following news today that Johnson-Crapo housing finance bill markup has stalled, Tim Pagliara, head of Investors Unite issued the following statement (its from April 29th, 2014):
Tim Pagliara’s statement regarding Fannie Mae, Freddie Mac reform
“Today’s decision by the Senate Banking Committee to delay the mark-up of the much touted reform legislation is indicative of the deep flaws in this legislation, which would codify the government’s attempt to wipe out investors in Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC), raise the cost of mortgages and add to our national debt.”
“It’s interesting to note that this delay happened despite energetic lobbying for the bill by Secretary Donovan, who has recently made assurances that the bill would not raise the cost of mortgages or impact mortgage availability and affordability. It will in fact raise the cost of mortgages and limit availability, as Moody’s and many other major analyses have reported. Our position is consistent with not only the understanding of most of the mortgage and finance community, but with constitutional and business law scholars as well. Under current proposals, everyone loses: investors, creditors and the broader US economy itself in a society in which the rule of law has been diminished.
“Investors from across America have been excluded in this process until now. We’re the only stakeholder group that has not been included in the process, and we’re hoping to work with members of the Senate Banking Committee on a bill that protects home affordability, protects investor rights and does not experiment with one-sixth of our economy.”
About Investors Unite: Formed by Tennessee activist investor and CapWealth Advisors Chairman and CEO Tim Pagliara, Investors Unite is a coalition of private investors from all walks of life, committed to the preservation of shareholder rights for all invested in Fannie Mae and Freddie Mac. The coalition works to educate shareholders and lawmakers on the importance of adopting Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) reform that fully respects the legal rights of Fannie Mae and Freddie Mac shareholders and offers full restitution on investments.