The 60 Plus Association launched TV and radio advertisements in seven states, a few days back, opposing the Senate Banking Committee Members who are in favor of the recently introduced legislation that, in their view, empowers the government to take control of the mortgage industry. The new legislation is viewed ‘disturbingly similar’ to Obamacare.
Democrat and Republican Senators named in 60 Plus campaign
Three Democrat and four Republican Senators have been named in the campaign. Democrat senators targeted for supporting the Fannie Mae / Freddie Mac reform include Joe Manchin, Mark Warner and Kay Hagan. Republican Senators named include Mike Crapo, Dean Heller, Mark Kirk and Jerry Moran.
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The proposed plan from the Senate Banking Committee Chairman Tim Johnson and Ranking Member Crapo, which also enjoys the backing of President Barack Obama, wipes out the ordinary shareholders in Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC).
Jim Martin, chairman of 60 Plus, expressing his concerns, says that the investors in Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) include retirees, teachers, police officers, and firefighters. The new plan will take away their investment and land it in the hands of the government.
Time must be given to investors in Fannie and Freddie
“The Johnson-Crapo legislation would also codify the Treasury’s Third Amendment that has confiscated all money due to Fannie and Freddie’s private shareholders,” Martin said, and added that millions of investors will lose out due to the suggestions included in the Johnson-Crapo legislation. 60 Plus, for its part, is requesting the senators not to force Obamacare into the mortgage industry, but give time to the investors in Fannie and Freddie to recover their investment “that are lawfully theirs.”
According to Martin, the Johnson-Crapo bill will contribute $5 trillion to the balance sheet of the government. Based on the estimates of their financial advisors, Fannie and Freddie are expected to fully repay the 2008 federal bailout this month, says Martin.
The Obama Administration has already included the $179 billion of expected profits from Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) over the next 10 years, in the government’s budget. This profit, according to Martin, belongs to the shareholders, who placed their money in the government-sponsored enterprises, or GSEs.
The 60 Plus Association, established in 1992, is a non-partisan seniors advocacy group. The TV advertisement from the association can be viewed here.