Congressional Republicans are blasting the White House’s decision to rework the government bailout of housing giants Fannie Mae and Freddie Mac.
The Treasury Department’s decision to modify some terms of the nearly four-year federal lifeline is drawing calls from GOP lawmakers to overhaul the housing system once and for all. They chastised the White House for taking these steps instead.
Rep. Scott Garrett (R-N.J.) called the changes a “slap in the face” to taxpayers and charged the administration with “kicking the can down the road” on reforming the housing system with the adjustments.
“Instead of devoting time and energy towards prolonging bailouts, the Obama Administration should work with Congress to wind these companies down and create a new and sustainable housing finance system where taxpayers are not at risk,” he said in a statement.
The Treasury Department announced Friday it was adjusting the terms of the bailout for the two government-sponsored enterprises, which have been kept afloat thanks to nearly $200 billion in government aid.