Who is getting what from who?
When I was an
active Fannie lobbyist, the affordable housing crowd consistently would rally
around and lend their numbers one to another on issues they all supported.
“If we didn’t hang together, we all could
hang separately.”
Inherently, we
all grasped Ben Franklin’s prescience and mortal warning.
I am sure many don’t realize it but Mr. Franklin's words have graced the front page of every blog I’ve put out (at the top of the
page).
That approach
collectivity served the “housers” well and you often would see, pro-housing advocacy
letters sent to Congress or the White House signed by 20 or more, prominent industry
or social /social interest allies, indicating solidarity among those supporting
the shelter needy.
But if the
rumors from inside the community are true, something is amiss.
A cadre of
spoilers, suddenly enthralled, again, with the work of ex-Senator Bob Corker
(R-Tenn.) are trying to revive Corker’s failed approach to fixing Fannie and
Freddie, his “Jump Start” legislative proposal.—which I think went down in
Senate flames when its original GOP sponsors offered “no mandatory affordable housing support” in their bill—seem to
be stirring the ashes and seeking revived support for it from current SBC
Senators Senator Mark Warner (D-Va.), Mike Crapo (R-Id.), and others.
Someone in DC
always is trying to take advantage of low-income interests and screw them.
The handy victims
are presumed to be malleable, unsophisticated, and easy to con or fool,
and—invariably—people of color, who have every right to feel marginalized when
put through that wringer, again, this time by faux friends.
Happens all of
the time but it is more heinous when some of the perpetrators have a history as
low mod friends, activists, and advocates themselves. Then, it becomes a three-level
game of “who is easiest to fool,” a contest where the rules keep changing.
At these stressful times,
you will discover situational friends with their own personal agenda--who decide
they can shuck the rest of their traditional allies--will tell Members of
Congress and their staffs whatever they want about the issues they’re pitching
because those Hill types don’t understand the substance let alone nuance behind
the tales they are being fed.
The entire DC
Fannie/Freddie GSE scene is confusing enough, with delayed Admin promises to
end Conservatorships and various no-win campaigns backing old, losing GSE schemes
touted by mainly bad guys threatened by Mnuchin and Calabria and the results of
the Fifth Circuit Court.
For the past
six months Treasury’s possessed a solid plan to achieve that transition, given impetus
by a fresh a Fifth Circuit plaintiffs’ decision--which added political cover--and a new GSE regulator, stumbling as he may be and announcing,
unrealistically, his lack of fear in “wiping out all GSE investors.”
Some of what I
am describing in the previous paragraphs are continued efforts from the still-
seeking-relevancy “fellow travelers” of yesteryear, Obama-ites Mark Zandi and
Jim Parrott and their current posse, shilling for legislative ideas from former
Senator Bob Corker (R-Tennessee) and his ex-staffer, former Countrywide trader,
Milliken Institute, Ginnie Mae ship- jumping Michael Bright, who landed not at the
top of Ginnie—since his nomination never got sufficient support—yet earlier
this year was named CEO of the Structured
Finance Industry Group.
Reportedly, other
pro-Head Start advocates working the case are Mike Calhoun, prominent houser and President of CRL the, Corporation
for Responsible Lending and Eric Stein,
CRL alum and recent aide to Mel Watt (Mark Calabria’s Democrat predecessor). With
Stein, reportedly, now headed to the Milken Institute.
The current
story is the tricksters have been stirring up trouble among Hill
denizens and low-income groups, trying to resurrect the old Corker “Jump Start”
bill, and trigger a fights/ disunion between Calabria/FHFA (now the interim “good
guys”) and those who read differently the affordable housing tea leaves.
I can’t begin
to divine all of the conflicting agendas of these identified principals, but first
off—fearful of the recent progress the White House has made, these new
opponents seek anything which slows down ending Conservatorship. In their
minds, delay is good.
Pretty crappy
show of support for the other affordable housing interests—who root for Conservatorship
to end, “right *&^%$#@ now!”
Not to mention stabbing in the back the
Fannie and Freddie senior staff which have sent lots of corporate financial
support CRL’s way ($$$).
People on both
sides of the aisle and both sides of the Hill know—because of the wide ideological gap between the respective Financial Services committees—no
GSE common legislation can emerge in this Congress.
So, the
mischief-makers go for a procedural halt, any dispute to gum up the process.
Ending conservatorship
sits on uncertain ground, which delay hurts.
Worse, matters easily
could be vaulted into 2020, slowed down by the quadrennial election and then,
tied up, over the anticipated D or R challenges to those results and/or any
legal challenges to FHFA’s Constitutional viabilities.
A Democrat presidential
victory wipes out current Treasury leadership and possibly FHFA, too, depends
on a legal decision as to the constitutional viability of FHFA.
But, why is
CRL’s Mike Calhoun or anyone else in the low-mod housing community trying to
frustrate the GSEs which just want to get back doing their previous excellent
work in the neighborhoods?
What does he/CRL
stand to gain?
Activists, question
him; if he wants your support ask him to explain, exactly, why Bob Corker’s old
legislation, never thoughtful or strategic, suddenly is? Be careful who you
follow and for what you sign up. Make sure those “past friends”--who come a
calling--hold your interests as high as they hold their own?
Maloni,
10-28-2019
