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68 stability by insulting the Bureau from abrupt changes in policy and direction that might occur each time a new director is appointed," Hensarling said. "Real consumer protection puts power where it belongs: in the hands of consumers, not a single Washington bureaucrat." WINDING DOWN THE GSES e fact that Fannie Mae and Freddie Mac re- main under the Federal Housing Finance Agency's conservatorship after nearly eight years is another major source of consternation among lawmakers. e conservatorship remains a major source of controversy because taxpayers remain on the hook for about $5.1 trillion in government-backed mortgages, which amounts to approximately one-third of the U.S. economy. Nearly nine of 10 new mortgages originated today are insured by the government. Hensarling calls this system "unsustainable," noting that "Washington elites decide who can qualify for a home mortgage—putting the goal of homeownership out of reach for millions of creditworthy American families. at's not fair. e unprecedented level of government control and distortion in our housing markets has produced a declining homeownership rate and anemic economic growth." In order to achieve a housing finance system that is sustainable over time and where taxpayers are not at risk, Hensarling backs the Protecting American Taxpayers and Homeowners (PATH) Act introduced by House Republicans in July 2013, sponsored by Rep. Scott Garrett (R-New Jersey). e proponents of the act say the goal is to end the taxpayer-funded bailout of the GSEs and phase them out within five to seven years; protect and restore the Federal Housing Administration by clearly defining its mission to serve first-time and low- to moderate-income borrowers; and reduc- ing the government's footprint in the mortgage industry by implementing reforms that increase competition, enhance transparency, and maximize choice for consumers. "By winding down the GSEs and their influence in the market," Hensarling said, "increasing competition for mortgage products, and providing consumers with more choices, we can achieve the ultimate goal of providing homeowners with more lending options in a mortgage market that is fueled by private capital, not taxpayer backstops." THE SMELL TEST For the past 13 years serving in Congress, Hensarling's "conservative cause" has always included fighting for taxpayers. He isn't afraid to call out Washington "bureaucrats" for being too controlling if it means successfully reigning in the government's budget. "We need more transparency and accountability," Hensarling said. "Too often, Washington bureaucrats think that they can legislate the risk out of our economy or around the law of supply and demand, and that we are just one new government program away from having our cake and eating it, too. In almost every instance taxpayers are told that it won't cost anyone a dime, and in almost every instance those bureaucrats are wrong. e plain truth is that government programs always have costs, some clear and many hidden, and the bigger the ambition of the program, the larger the risk to taxpayers." e first step in minimizing risk to taxpayers, Hensarling said, is to recognize the unintended consequences of government programs and ask if the benefit to a few will be worth the cost borne by many. "Some programs may turn out to be worth doing; others will clearly not pass the smell test," he said. "We can't ever hope to repair our broken housing finance system without being honest about how much it costs taxpayers to operate and who ultimately is on the hook for paying that bill." In order to cut spending by the government, Hensarling has led the successful charge to eliminate congressional earmarks, which he calls a "gateway drug for spending addiction." While he admits not all earmarks are bad, it's more what the earmark process represents: "Triumph of secrecy over transparency, special interest over the national interest, and seniority over merit." Hensarling said that "earmarks fun- damentally disrespected the hard-earned money of American workers and too many earmarks were in the nature of an unacceptable, no-bid contract. While they represented a small fraction of Washington's total spending, there is no doubt that congressional earmarks were a large part of Washington's reckless culture of spending." With a lengthy record of government service, and now age 59, where does Hensarling go from here? History suggests he won't seek a higher office. Last September, he briefly considered making a run at the Speaker of the House position upon the abrupt resignation of John Boehner, but ultimately decided not to pursue it. History does suggest however that, love him or hate him, Hensarling will continue the fight to implement his vision and let the chips fall where they may. "The CFPB has an important mission. Properly designed and led, it is capable of great good."

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