Neugebauer Statement: We’ve Nationalized the Mortgage Market in this Country
WASHINGTON, DC—Congressman Randy Neugebauer (R-TX) delivered the following statement at the House Financial Services Committee Hearing entitled, “Building a Sustainable Housing Finance System: Examining Regulatory Impediments to Private Investment Capital.” Neugebauer discussed the importance of reducing the government role in housing finance, explaining that doing so not only improves our markets, but also keeps taxpayers off the hook for future government bailouts.
You can watch video of Neugebauer’s statement here. Selected quotes follow.
“What we’ve done in trying to ‘fix’ the mortgage market in this country, is nationalize the mortgage market in this country.
“Nine out of every ten mortgages have some federal backing. While there is private activity, it’s a nominal amount.
“We’ve created a new category of investment risk, called regulatory risk. Market participants are having a difficult time pricing this risk because there’s so much uncertainty. Even as we speak, rules continue to change.
“So today I’m looking forward to removing some of the impediments and bring private capital back in. With a robust housing finance market everybody wins. But more importantly, American taxpayers have already put $200 billion into these mortgage finance entities, and we need to make sure that taxpayers aren’t in this business of guaranteeing their neighbors’ loans.”