Hackworth's thoughts on mortgage bailout
DUNEDIN -- Wondering what Congressional candidate Bob Hackworth thinks about the Fanny Mae and Freddie Mac bailout?
The campaign for Hackworth, a Democrat seeking U.S. Rep. C.W. Bill Young's seat, sent out this press release today:
Fannie Mae was created as a public agency in 1938 so that there would be a secondary mortgage market to help middle class homeowners finance their homes. In 1968 Fannie Mae was open to private investors even though they continued to receive public funding to back the loans. Mayor Hackworth said, “By introducing private investors and profit taking, and through the loosening of government restrictions, Fannie Mae borrowed and loaned more than could ever be repaid. Because half of all mortgages are secured by Fannie Mae and Freddie Mac, they are too big to be allowed to fail.”
Bob Hackworth believes that now would have been the perfect opportunity to reintroduce fair government regulation to ensure the original intent of the backing of mortgages through public guarantees which was to help Americans become homeowners, stabilize the middle class and secure assets that helped sustain the economy. “While this will not solve the problem for everyone, it could help as many as 500,000 homeowners so it is a big step in the right direction.” said Hackworth. “We have to bail out Fannie Mae and Freddie Mac, we don’t have a choice in that matter, but we should not do it without conditions and we should not leave homeowners with no relief,” said Hackworth.
--Stephanie Garry, Times Staff Writer