In early September the two government sponsored mortgage finance companies Fanninie Mae and Freddie Mac were put under the conservatorship, or legal control, of the U.S. government. The CEOs were dismissed and the Federal Housing Finance Agency Director James Lockhart III was installed as a temporary replacement for the board of directors.

“We did not take this action lightly. We counseled with Chairman Bernake…we also consulted with Secretary Paulson. They both concurred with me that conservatorship needed to be undertaken,” said Lockhart during a House Financial Services Committee hearing.

“First signs, despite all the market turmoil are that the conservatorships are positive. I am pleased to say that the enterprises are funding costs and the spreads on the {Mortgage Backed Security} have declined.”

Lockhart went on to say that since the conservatorship home rates for thirty year mortgages fell below six percent for the first time in 2008.

In order to pursue stability, Freddie Mac and Fannie Mae both had to go through major changes. The CEOs were replaced by former U.S. Bancorp Vice Chairman David Moffit and former Merrill Lynch president Herb Allison. Both companies have severely limited approval of low document and no document loans, and common stock and preferred dividends were eliminated, saving the companies $2 billion. In addition, Lockhart says both CEOs have been urged to be more creative in preventing home forclosures.

The Federal Emergency Management Agency (FEMA) submitted a strategy plan which was a year overdue to the Disaster Recovery Subcommittee, according to Senator Mary Landrieu (D-La.). Landrieu added that not only was the strategy late but key annexes of the report, required by Congress, were nothing but blank pages. (more…)

Briefer: White House Press Secretary Dana Perino

Schedule:

The President had his normal briefings this morning. At 10.30 am, the President and Mrs. Bush will participate in the signing of H.J Res. 93, the Renewal of Import Restrictions on Burman and in the signing of H.R 3890, the Tom Lantos Block Burmese JADE (Junta’s Anti-Democratic Efforts). At 10.45 am, President Bush signs H.R. 1553, the Caroline Pryce Walker Conquer Childhood Cancer Act of 2008. This afternoon at 1.25 pm, the President departs the White House heading to Ohio. He will make remarks on energy and the economy at the Lincoln Electric Company Euclid, Ohio. At 5.45 pm, President Bush attends a Congressional Trust 2008 Reception at a private residence at Gates Mills, Ohio.

There will no be briefing today

Energy

Perino said that Congress goes on their recess by the end of the week leavening several proposals in the air, including opening energy resources such as ANWR, off shore drilling, oil shale, and streamlining opening refineries. She also said that the President will discuss all of this in his remarks later today. In the President’s cabinet meeting tomorrow they will discuss energy needs, which are the most important needs facing Americans today. Asked several questions about people driving less, Perino said that this shows laws of supply and demand, she also said that the Administration will look for way to bring the prices down. When asked about the highway trust fund, she said that the President has a way to address it in the budget and she does not believe that the way to deal with it is raising taxes.

Iraq

Asked about the uptick in Iraq, Perino said that there was a lot less violence and a need for flexibility with the military, and that we still have a determined enemy. She also said that high profile attacks using female bomber is deplorable.

Housing Bill

Dana said: “ At some time it is going to irresponsible if they don’t sent it [the housing bill]” She continued to say, that they need to send the bill to us and again pushing the White House concept of the- do-nothing-Congress, they are back in town over a long weekend recess. She also said that “you can’t put a timetable when the housing market rebounds”.

Serbia

When asked about US efforts to catch Karadzic, Perino said that over the years we have been supporting of efforts, “that is all I can say”.

Burma

Dana said that sanctions can work and the goal is to squeeze the people that are pressing people and not the people.

Briefer: Dana Perino

President’s Schedule:

President Bush had his normal briefings at 8 am this morning. At 11 am the President will make a statement on the 10th Anniversary of the International Religious Freedom Act, in the Roosevelt Room of the White House. At 1.30 pm, the President will make a statement in the Rose Garden on the energy needs of the country, and the importance of expanding exploration for resources here at home. The President will announce that he has decided to lift the executive ban on oil exploration in America’s outer continental shelf, and he will again call on Congress to lift its legislative ban.
Perino also made remarks about the news of former Press Secretary Tony Snow who passed away on Saturday. She thanks everyone on behalf of the Snow family for the outpour of support, and quoted the President: “Tony Snow was a great friend to everybody at the White House. “ Perino also announced the funeral services for Thursday July 17, 2008 to be held at 10 am at the Basilica at Catholic University. The President will be attending this service. (more…)

A discussion on U.S. immigration was held at the Library of Congress. According to panelists, two thirds of Americans feel that the administration is not doing enough to deal with the approximate 12 million illegal immigrants residing and working in the U.S. (more…)

Shaun Donovan, commissioner of the City of New York Department of Housing Preservation and Development, says that housing costs vary from area to area in response to a question as to whether there was a flat rate for housing. Housing in areas like New York or San Francisco are considerably higher than areas where costs of labor and materials are lower. (0:46)

 

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At a hearing on “Affordable Housing Preservation and Protection of Tenants” Shaun Donovan, commissioner of the City of New York Department of Housing Preservation and Development, says that too much public funding is being wasted on hiring lawyers and consultants just to ensure programs work. Donovan says that, in New York City, mixed income housing is successful and vouchers should be used more creatively and effectively. (1:12)

 

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Chairman Barnett “Barney” Frank (D-N.J.) emphasized the importance of affordable housing preservation and protection of low income tenants to curb the rising number of homeless people in America at a hearing held before the House Financial Services Committee. (more…)

The HOPENOW Alliance sponsored a conference call discussing the ways they have helped “distressed homeowners” keep their houses and start to bring about the end of the foreclosure crisis.

The call described the new agreement HOPENOW has implemented to help distressed families. This agreement will hopefully “streamline help”- making monetary assistance come faster to families in need. The new agreement will also hopefully alert more at risk homeowners before they find themselves in financial trouble.

Leaders of the Alliance emphasized the progress their program has had, and the steps they are making to improve their efforts. They said they are still trying to make borrowers more open to discussing financing options with the people loaning them money.

The Center on Budget and Policy Priorities held a conference call to compare the House and Senate housing relief tax packages. Aviva Aron-Dine, Barbara Sard, and Robert Greenstein, executive director of CBPP spoke during the briefing. (47:32)

 

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