Toomey visits Monroe Co.; says Congress not addressing financial offenders
By David Pierce
Pocono Record
June 23, 2010
Financial regulatory reform measures before Congress aren't addressing the worst offenders, Republican U.S. Senate candidate Patrick Toomey said Wednesday during a visit to Monroe County.
Two government-sponsored enterprises that buy home mortgages from lenders — Fannie Mae and Freddie Mac — have cost taxpayers more money than all the failed financial institutions Congress bailed out during the recession, Toomey said.
Toomey, who opposed the bailout package to financial giants that others contend prevented a full economic meltdown, says more damage was done by Freddie and Fannie. Their policies encouraged private lenders to issue home loans to consumers who couldn't afford it, resulting in massive mortgage defaults, he said.
Toomey said government subsidies for home ownership — including tax credits for buyers — don't work.
“Do it the old fashioned way,” Toomey said during an interview at the Pocono Record. “There is a lot to be said for conventional financing without all the subsidies.”
Buyers can save for down payments and obtain credit from local community banks, he said.
Earlier today, Toomey attended a $100-per-person fund-raising breakfast at Stroudsmoor Country Inn in Stroud Township.
The former three-term Lehigh Valley congressman is making his second run for the senate seat held by Arlen Specter. He fac
