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Geithner testifies on housing reform, uses damning language

Treasury Secretary Timothy Geithner testified today at the House Financial Services Committee, stating not only that mortgages will most likely be “modestly higher” after the national housing finance system is reformed but that it will take several years to complete.

The Obama administration announced last month that they will be shutting down Fannie Mae and Freddie Mac (who currently back 90% of all American mortgages) to reform the system and Geithner urged lawmakers to begin the effort immediately to avoid stunting the housing sector.

Geithner called upon Republicans who want to reduce Uncle Sam’s role in housing finance (and make lending more privatized) to act swiftly. “You can’t delay indefinitely on legislation defining an ultimate solution. If you do nothing… in many cases you would recreate Fannie and Freddie.”

It will be a long road however as any reform passed by the Republican-controlled House will next head up to the Democratic-controlled Senate which means years of debate despite Geithner’s warning for decisive action by lawmakers.

Geithner’s final warning was that if the House puts forth a proposal to extend the life of Fannie or Freddie, “we will resist.”

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Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

12 Comments

12 Comments

  1. Greg Lyles

    March 1, 2011 at 8:26 pm

    Yeah, and they were the same ones who wanted to make housing affordable to everyone with a pulse.

  2. naplesflorida

    March 2, 2011 at 7:53 am

    When will this administration decide to bring those off-shore jobs back home to America.

    Only once employment increases will this 10 year recession end. And we don’t need another war, just jobs will due.

    Thnak you

  3. Lani Rosales

    March 2, 2011 at 7:04 pm

    Comment from: LemonMeister
    https://www.akbhomesucks.com

    At least it is an attempt to appear like something might be done. Unlike other world governments this one, since World War II, ours keeps trying to shy away from providing housing by putting it in the hands of profiteers, no wonder the greed has taken over and we all suffer.

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