Frank refuted the notion that nothing has been done to make changes to how Fannie and Freddie do business. Since the government takeover nearly two years ago, "they have been run very differently so the notion that they haven’t been changed is wrong."
The firms lost most of their money on loans that went bad during the housing crisis, mainly between 2005 and 2008.
"Going forward it is clear we have to abolish this notion that there is a private shareholder corporation that also has a public mission that’s clearly a mistake," Frank said. "The one thing I am sure of is that the kind of hybrid of a private shareholder company with a public mission doesn’t work and we have to separate the various functions."
In recent days, Fannie Mae and Freddie Mac have requested another batch of federal aid -- about $3 billion total after posting second quarter losses.
Freddie Mac requested $1.8 billion in government aid after posting $6 billion in losses from April through June, the firm announced Monday. Those losses include $1.3 billion the company is required to pay the Treasury Department, representing a 10 percent annual dividend.
On Thursday, Fannie Mae asked for an additional $1.5 billion after posting a $1.3 billion loss, although its losses shrank dramatically in the second quarter.
Combined, the mortgage companies have borrowed nearly $150 billion to stay afloat.