Civil and Human Rights Coalition Applauds FHFA Director Mel Watt for Calling to Strengthen Fannie, Freddie Finances

WASHINGTON— Wade Henderson, president and CEO of The Leadership Conference on Civil and Human Rights, issued the following statement regarding Federal Housing Finance Agency Director Mel Watt’s testimony today before the Senate Banking Committee:

“We commend Director Watt for voicing strong concerns about a five-year-old policy that threatens the financial stability of the mortgage giants Fannie Mae and Freddie Mac. The 2012 decision to reduce Fannie’s and Freddie’s capital to zero, by the end of this year, threatens longstanding efforts to make housing finance accessible and affordable to more people. This policy was created before Director Watt was appointed and has been kept in place by pressure from the administration and Congress, but it makes no sense to continue it.  Keeping this policy in place poses a serious risk to the health of the current housing finance system, and does absolutely nothing to put us on the legislative path to a better system. Congress should heed Director Watt’s warning and support his continued efforts to protect taxpayers and to operate Fannie and Freddie in a sound and responsible manner.”

The Leadership Conference on Civil and Human Rights is a coalition charged by its diverse membership of more than 200 national organizations to promote and protect the rights of all persons in the United States. The Leadership Conference works toward an America as good as its ideals. For more information on The Leadership Conference and its 200-plus member organizations, visit www.civilrights.org.