Representative Jack Kingston (R-GA) introduced H.R. 3340, the Fannie-Freddie Debt Elimination Act, on October 24.H.R. 3340 would require dollars repaid by Fannie Mae and Freddie Mac to the Treasury Department to be applied to reducing the national debt. The bill would prohibit the Treasury secretary from entering any agreement to “further alter, amend, or change any provision of the Amended and Restated Senior Preferred Stock Purchase agreements related to dividend payment dates, dividend periods, dividend rates, or dividend amounts.” The measure has been referred to the House Committee on Financial Services and has no co-sponsors as of this writing.When the government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac were taken into conservatorship, they were “bailed out” with about $188 billon from the Treasury to keep them afloat. The bailout was in the form of the Treasury buying preferred stock. In order to prevent the GSEs from recapitalizing, Treasury and Federal Housing Finance Agency (FHFA) agreed that all profits would go to Treasury as of January 1, 2013. The GSEs were also required by the 2008 Housing and Economic Recovery Act (HERA) to contribute a portion of their book of business to the National Housing Trust Fund. These contributions were suspended before they began when the GSEs were taken into conservatorship. NLIHC is of the position that now that the GSEs are profitable once again, these contributions must commence immediately, and as this requirement is in statute, must supersede any policy decision, such as the current decision for all GSE profits to go to Treasury.The full bill text is available at: http://1.usa.gov/17lYvB8