On October 21, 2011, I sent a letter to Edward DeMarco, Acting Director of the Federal Housing Finance Agency (FHFA), requesting that he detail the involvement of Freddie Mac and Fannie Mae--which his agency oversees--with the mortgage refinancing initiative that President Obama is announcing today. The President previously stated that the initiative would "help more people refinance their mortgages at interest rates that are now near 4 percent."

I am concerned that Freddie and Fannie could incur substantial costs in connection with implementing the President's refinancing plan. FHFA has a responsibility to enhance the safety and strength of the housing market, while protecting taxpayers. I want to make sure that FHFA is considering all possible costs and benefits of a mortgage refinance program, and not simply endorsing a backdoor stimulus. In my letter to Mr. DeMarco, I requested that he respond to these concerns.  Any program that FHFA endorses must be consistent with its duty as conservator of Fannie and Freddie.

Read the full text of the letter here: