The hashtag #Fanniegate is blowing up on Twitter, with a war of words between those who think the government overstepped its bounds with the third amendment sweepand those who think the government was well within its rights.
First a little recap, and a warning: GRAPHIC LANGUAGE.
Michael Stegman, counselor to the secretary for housing finance policy with the Treasury, said at the Goldman Sachs (GS) Housing Finance Conference Thursday morning that the current status quo is unsustainable and taxpayers are still on the hook.
“The critical flaws in the legacy system that allowed private shareholders and senior employees of the GSEs to reap substantial profits while leaving taxpayers to shoulder enormous losses cannot be fixed by a regulator or conservator because they are intrinsic to the GSEs’ congressional charters,” Stegman said.
“And these charters can only be changed by law. That is why we continue to believe that comprehensive housing finance reform is the only effective way forward, not narrowly crafted ad-hoc fixes,” he added.