Monday, April 10, 2017
By Paul Martin

Scheme destroying 30-year mortgages

Jerome Corsi
APRIL 10, 2017

WASHINGTON, D.C. – Tennessee Republican Sen. Bob Corker, derisively tagged the “Senator from Wells Fargo” by those fighting to recapitalize Fannie Mae and Freddie Mac, is actively pushing President Trump to continue the Obama administration policy of sweeping Fannie and Freddie earnings to the Treasury Dept.

In a letter dated March 29, 2007, Corker rounded up four other U.S. Senators, including Virginia Democrat Sen. Mark Warner to write a letter to Melvin Watt, the director of the Federal Housing Finance Agency.

The letter asked President Trump to continue taking what is known as the “Net Worth Sweep” that sweeps all Freddie and Fannie earnings into the U.S. Treasury, without paying stockholders any dividends.

The Net Wort Sweep of all Freddie and Fannie earnings to the Treasury has been taking place since President Obama had the Treasury amend the Preferred Stock agreement that has stripped the two GSEs of more than $260 billion since August 2012.

In contrast, all the banks bailed out by the Obama administration were allowed to repay their debts, giving the government a $7.5 billion dollar gain or a 1.7 percent return on investment.

Senators Crocker and Warner in asking President Trump to make the Net Worth Sweep payment due March 31, 2017, were continuing the Obama administration Net Worth Sweep policy that since August 2012 had prohibited Fannie Mae and Freddie Mac from paying off the $187.5 billion the Treasury had invested in the two companies in 2008 as a bailout.

To date, Fannie and Freddie have returned $68 billion more than they borrowed in the 2008 bailout, providing the federal government the best return on investment Washington has made since the Louisiana Purchase – a ROI (Return on Investment) of 36 percent.

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