Press Room: Press Releases

Washington, DC – Senator Jay Rockefeller today issued the following statement regarding the announcement by U.S. Treasury Secretary Henry Paulson that the federal government will place Fannie Mae and Freddie Mac under conservatorship – a legal status similar to bankruptcy, with the goal of restructuring the two mortgage giants whose public mission is critical to U.S. homeownership.

 

“Fannie Mae and Freddie Mac have a direct impact on the economic stability of West Virginia and we need them to remain strong. In the last decade, these two mortgage giants have helped tens of thousands of West Virginia families buy a home and hundreds more avoid foreclosure,” Rockefeller said. “Homeownership in our state is a lot higher than the national average thanks, in part, to the public mission of Fannie Mae and Freddie Mac. That’s a good thing and leads to strong communities and a better quality of life for hard-working families. I will fight to maintain that.”

 

“Nearly eight years of the Bush Administration’s hands-off approach has done real damage to our economy. It was absolutely right for the government to step-in and shore-up Fannie Mae and Freddie Mac but this is a costly mistake and we have to do everything we can to protect taxpayer dollars. Ousted executives better not come asking for big payouts,” Rockefeller said.

 

As of May 2008, Fannie Mae held approximately 57,000 loans in West Virginia. In the past ten years, Freddie Mac has invested $10 billion dollars in the state helping 95,855 families own or rent a home. Last year alone, Freddie Mac helped 243 residents avoid foreclosure, enabled 958 families to purchase a home, and funded an average mortgage of $136,630.

 

Earlier this year, Rockefeller voted to pass the Foreclosure Prevention Act which authorized the Treasury Department to extend a line of credit to Fannie Mae and Freddie Mac. The same law also permitted the government to take over the two companies, if necessary, to prevent a total meltdown of the economy and keep West Virginia families in their homes.  

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