Dear Mr. Pollard,
Thank you for asking for input on the Housing Trust and Capital Magnet Funds.
Fighting homelessness is a personal cause for me, so I support the funding of both the HUD and Treasury funds.
However, doesn’t the effort appear disingenuous to you? On the one hand the US Government (FHFA & Treasury) states that the GSEs are failed entities and can never return to the market in their former selves. Then, on the other hand, the US Government is claiming that the GSEs are so profitable that they should fund government-sponsored charitable endeavors. Am I alone in finding this duplicity hard to comprehend?
Therefore, would it not make sense to end the Sweep and release the GSEs from Conservatorship? Wouldn’t these reversals allow the GSEs to generate higher profit, thus increased contributions to both funds?
Further, I trust you share in my hope that the individuals who had their retirement funds invested in the GSEs destroyed (due to the Sweep) are not the very same individuals who will need to rely on the Housing Trust Fund and the Capital Magnet Fund in their golden years of life.
Thank you again for allowing comment. I hope you are enjoying the holiday season!
Fan O. Fred