ns —— bomorte Setg 8 Poy ; cul Conte Congress of the United States ona Cu, Commer n nae, ‘House of Representatives seman cans Cat aso Michael E. Capuano wei woneuseceerne Ath Distt, Massachsets June 18, 2013 ‘The Honorable Jack Lew Seeretary US. Department of the Treasury 1500 Pennsylvania Avenue, NW Washington, D.C. 20220 Dear Secretary Lew: {As you know, the House Financial Services Committee held a hearing on May 22, 2013 on the Financial Stability Oversight Council's (FSOC) 2013 Annual Report at which you testified. In this hearing | mentioned that almost all ofthe bailout money given to US. institutions during the financial crisis has largely been repaid withthe glaring exception of Fannie Mae and Freddie Mac, which received approximately $187.5 billion in taxpayer money. None of these funds have technically been repaid; although to date they have returned 865 billion and are expected to soon return another $66 billion to the Treasury sine entering conservatorship in September 2008, While this represents 70% of their deb, their preferred shared stock agreement does not allow ‘hese funds t be counted as payment towards their principal I realize that Fannie Mac and Freddie Mac need to be reformed, especially given ther renewed profitability, However, if we do not address the issue of payments not going towards principal reduetion then we will have accomplished nothing and the bailouts will represent nothing more than outrageous usury. Ifthe GSEs are not permitted to pay down their principal then any future funds sent tothe U.S. Treasury should be reinvested in the housing market. These payments, should not be going towards reducing the national debt as this is a burden to be botne by all “Americans. Homeouners are not « pigay bank and forcing them fo take more take inthe process of national debt reduction than they already do is a mismanagement of taxpayer dollars, Inthe meantime, please be aware that today | introduced the attached bill to move this proposal Toratis my understanding that Treasury and FHFA can simply change the agreement and allow Fannie and Freddie t pay off ther deb like everyone else was allowed. Please explain if “Treasury will tke steps to allow Fannie and Freddie tobe eredited for its payments as its the right thing to do and accepts reality of their repayment. If Treasury doesnot plan to do this, please explain why not; and ifit cant, then please deseribe what action Congress mus take to make this happen. Sincerely, ‘Member of Congress