Fattah Calls on the Administration to Invest in the American Dream.
A federal surplus should be committed to the Housing Trust Fund
WASHINGTON, May 9, 2013 /PRNewswire-USNewswire/ — Congressman
(D-PA), called on
see Federal National Mortgage Association.
see Federal Home Loan Mortgage Corporation.
to increase their
commitment to the Housing Trust Fund – creating a pathway for Americans
Today, both Fannie Mae and Freddie Mac disclosed that they have a
potential surplus of
as a result of both the booming house
market and the fees associated with their home loan guarantees. The
surplus is an estimated $89 billion, well beyond their 2012 profits of
$17.2 billion and $11 billion for Fannie Mae and Freddie Mac
Based on these initial profits, Congressman Fattah urged the
Administration, through a letter, to direct the agencies to transfer
some of those dollars to the Housing Trust Fund. The Housing Trust Fund
is an entity created to provide affordable loan packages for middle
class families. Created during the Bush Administration and supported by
the Obama Administration, the Housing Trust Fund, despite its important
mission, is unfunded and has been since its creation.
“The boom in the housing market is good news for American
families,” Fattah said. “This is why it’s critical to
call the Administration to direct Fannie and Freddie to invest in
working families and the American Dream by directing some of this
surplus to the Housing Trust Fund.”
The full text of Congressman Fattah’s letter follows.
May 3, 2013
President Barack Obama The White House West Wing 1600
, NW Washington, DC 20502
For millions of Americans, life is a daily struggle that often
forces them to choice between rent, heat, and food. In 2011, many of
these individuals found themselves homeless because they were unable to
find affordable low cost housing. Unfortunately, the country continues
to find itself with a dearth of this type of housing. Developers,
builders, and housing providers say they cannot build low cost housing
cheaply enough to satisfy the debt service on these units.
Established as part of the Housing and Economic Recovery Act of
2008, the Housing Trust Fund (
HTF How To Fight
) provides grants to states to increase
the supply of affordable rental housing. The original intention of the
Economic Recovery Act was to fund the HTF through Fannie Mae and Freddie
Mac profits. However, the economic recession left Fannie and Freddie
unable to adequately fund the HTF. Recently, Fannie Mae and Freddie Mac
both reported net profits for 2012; Fannie Mae $17.2 billion and Freddie
Mac $11 billion.
Because of these new profits, I call on the Obama Administration to
fully fund the HTF. Once funded, the HTF can finally be used to
preserve, build, and rehabilitate affordable rental homes in communities
across the nation. Moreover, because the authorizing statute provides
for a dedicated source of funding for the trust fund through annual
GSE’s assessments, the HTF will not be caught in partisan
Thank for your attention in this matter.
Very truly yours,
Chaka Fattah Member of Congress
SOURCE Office of Congressman Chaka Fattah