Nominee seeks end to Fannie, Freddie

President Obama’s nominee to lead the Department of Housing and Urban Development urged lawmakers Tuesday to move forward with efforts to shutter Fannie Mae and Freddie Mac, saying the current housing finance system is not serving Americans well.

Julian Castro told the Senate Banking Committee that, if confirmed, he would seek to ensure taxpayers are never again on the hook in a housing crisis as they were when the government stepped in to bail out the two mortgage financiers.

“I absolutely believe that there are better alternatives than what we have in place with this duopoly and with this conservatorship,” Castro said.

Castro, mayor of San Antonio, was nominated by Obama last month to replace Shaun Donovan, who was picked to lead the White House budget office. Castro has been lauded for his housing and economic development programs in San Antonio, the nation’s seventh-largest city.

— Reuters

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