ICBA urged the Treasury Department and Federal Housing Finance Agency to suspend payment of Fannie Mae and Freddie Mac dividends.
In a news release, ICBA said suspending the destructive sweep of the government-sponsored enterprises’ earnings directly to the U.S. Treasury would help protect consumers and avoid a future housing crisis.
“While compensating the U.S. Treasury for its support during the financial crisis is reasonable, bleeding Fannie Mae and Freddie Mac of all their earnings and capital is setting up our housing market and economy for another massive bailout,” ICBA President and CEO Cam Fine said.
The ICBA release followed the latest earnings announcement from Fannie and Freddie, which brought their collective dividend tally to $265 billion—$78 billion more than the $187 billion provided by Treasury during the financial crisis.
ICBA said allowing the enterprises to build capital while policymakers consider housing-finance reform will protect the housing market and prevent future crises.
Read ICBA Release>