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Bachus: Did Fannie Mae Exploit HAMP To Benefit From Incentive Payments Offered By Obama Administration?


WASHINGTON, Aug 6 -

- Financial Services Committee Ranking Member Spencer Bachus urged Chairman Barney Frank to convene a hearing to examine whether Fannie Mae executives improperly implemented the Home Affordable Modification Program (HAMP) in order to benefit from incentive payments offered by the Treasury Department for mortgage modifications.

Ranking Member Bachus said in the letter, "These allegations are of particular concern, not only because taxpayers have invested more than $85 billion in Fannie Mae to offset its losses, but also because it is being reported that the Administration might order the government-controlled mortgage finance company to forgive many Americans' mortgage debts later this month..... If true, it would help explain why HAMP has been such a failure.  It would mean that thanks to Fannie Mae's executives' misfeasance, particularly a preoccupation with short-term financial gain, HAMP was only able to permanently modify about 230,000 mortgages, instead of the 3 million modifications that the Obama Administration promised."

Ranking Member Bachus called for Fannie Mae executives, its regulator, and whistleblower Caroline Herron to testify at the hearing.

Click here to view a copy of the letter.