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Collapse of Freddie, Fannie hits home
More than a few questions remain about the federal government's takeover of McLean-based mortgage giant Freddie Mac and its counterpart across the river, Fannie Mae.
For those who care about philanthropy in Northern Virginia, the logical question seems to be, “What now?”
Last month's collapse of Fannie and Freddie did more than rattle world financial markets and pummel U.S. home values. It also left a Titanic-sized hole in the operating budgets of area nonprofits that have survived on Freddie and Fannie's largess for years.
Over the past decade, the two lenders have poured nearly half a billion dollars into nonprofit organizations across the country. In 2007, the Freddie Mac Foundation contributed nearly $25 million to organizations in the D.C. area, including more than a dozen in Fairfax County.
When and how that void gets filled is still up for debate.
"There are definitely some questions hanging out there," said Merni Fitzgerald, Fairfax County's director of public affairs and county spokeswoman. "What happens to the Freddie Mac Foundation? What happens to all of that funding?"
Kerri Wilson, executive director of Reston Interfaith, is eagerly awaiting some of those answers.
Last spring, Freddie Mac announced a $500,000 grant to help Wilson's Interfaith group fight hunger, homelessness and poverty in Fairfax County. The grant, scheduled to be disbursed over three years, is slated to go toward education, training and case management for a new program, Housing Opportunities Strengthen Everyone (HOUSE). The program will help move dozens of area families from transitional to permanent housing.
"This is a huge thing for us," Wilson said. "It's a three-year commitment, and it's funded through year one (2008-09). Given everything that's going on, I'm hoping we get the next two years."
When asked about a future without the philanthropic arms of Fannie Mae and Freddie Mac, Wilson doesn't mince words.
"That's a big hit for a lot of us," she said. "Those two agencies are one-two when it comes to giving, and it's not even close. I just hope Congress considers [nonprofits] when the the ultimate model for Fannie and Freddie is designed. A lot of families are struggling right now, and we shouldn't eliminate critical safety nets when people need them most."
Just a reminder to how we got in this housing mess, watch this in full, it may just change your vote:
http://www.youtube.com/watch?v=fiXwZI...
Posted by Centreville_Conservative
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