Congressman Scott Garrett

Representing the 5th District of New Jersey

Garrett Statement on FHFA Principal Forgiveness Ruling

Jul 31, 2012
Press Release

WASHINGTON, DC – Rep. Scott Garrett (R-NJ), Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, today issued the following statement after the Federal Housing Finance Administration (FHFA) ruled against forgiving mortgage principal on Fannie Mae and Freddie Mac mortgages:

“I would like to thank Director DeMarco for spearheading the FHFA’s thoughtful and extensive analysis to examine the impact of principal forgiveness on Fannie Mae and Freddie Mac mortgages.  As the FHFA’s thorough analysis confirms, the cost to the American taxpayer of principal forgiveness far outweighs the benefits to the overall housing market.  I praise Director DeMarco’s decision to protect the American taxpayer by preventing the Obama Administration from continuing to exploit the bailout of the GSEs to push their own social housing goals.  This thoughtful and analytical decision making process should be used as model for the rest of Washington’s bureaucrats before they make decisions without properly considering the costs and benefits to the taxpayer.”