Cummings Issues Statement on Inspector General Report That Faults FHFA’s Oversight of Fannie Mae and Freddie Mac

Cummings Issues Statement on Inspector General Report That Faults FHFA’s Oversight of Fannie Mae and Freddie Mac

Washington, DC (Sept. 27, 2012)—Today, Congressman Elijah E. Cummings, Ranking Member of the House Committee on Oversight and Government Reform, issued the following statement in response to a report issued by the Inspector General of the Federal Housing Finance Agency (FHFA) finding fault with FHFA’s processes for approving business decisions made by Fannie Mae and Freddie Mac.

“Today’s report identifies growing concerns with FHFA’s failure to exercise effective control over Fannie Mae and Freddie Mac. These recent revelations by the Inspector General are in addition to FHFA’s previous refusal to follow the law and implement principal reduction programs that could save U.S. taxpayers hundreds of millions of dollars,” Cummings said. “The bottom line is that FHFA must be a watchdog for taxpayers and homeowners—not a lapdog for Fannie and Freddie. If FHFA’s current leadership does not fulfill that role, they should step aside or be replaced.”

In its report, the Inspector General found that FHFA failed to properly assert its authority as conservator to approve Fannie Mae’s and Freddie Mac’s major business decisions; FHFA does not have a formal process for ensuring that Fannie Mae and Freddie Mac have complied with the decisions the Agency makes; and FHFA has at times relied too heavily on assessments from Fannie Mae and Freddie Mac rather than conducting its own analyses.

For more than a year, Cummings has been an outspoken advocate for greater transparency and effectiveness at FHFA. Cummings has been highly critical of FHFA’s refusal to allow principal reductions, as well as its decision to cancel a pilot principal reduction program that would have demonstrated significant savings in taxpayer funds.

In September 2011, an Inspector General report, requested by Cummings, revealed a prolonged failure by FHFA and Fannie Mae to adequately oversee law firms processing foreclosures. As a result, FHFA instructed Fannie Mae and Freddie Mac to begin “transitioning away” from their use of designated foreclosure attorney networks.

SOURCE: http://democrats.oversight.house.gov

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3 Responses to “Cummings Issues Statement on Inspector General Report That Faults FHFA’s Oversight of Fannie Mae and Freddie Mac”
  1. Sarah says:

    Maryland leads in foreclosures, many of the wealthy financial and other elites in the DC area don’t care if there are people being tossed out of their houses, since they are more concerned with their own wealth. This is where Tim Geithner lives, John Dugan, and other Wall Street leaders. They are oblivious to conditions outside of their own wealth and priveledged fortified existences. Housing is never and has never been a concern for them. It’s a clear dividing line of class war, just like anywhere else. Cummings is the rare politician who is addressing this abysmal reality.

  2. Anne Howard says:

    Is this legal? My husband had a loan with Chase Home Finance. On January 18, 2012 Freddie Mac purchased this loan. It was part of a mortgage backed security that involved many other loans from homeowners. My husband has had to default on the mortgage due to salary slashes at his work. Chase is foreclosing on the property claiming to be hired as servicer for Freddie Mac. Hasn’t Chase already been paid by Freddy Mac and are they a legal collector for Freddie Mac?

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