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MBA and FHFA Carefully Applaud Corker/Warner GSE Bill

by devteam June 26th, 2013 | Share

Both the MBA and FHFA have published responses to the bill introduced by a bipartisanrngroup of senators led by Bob Corker (R-TN) and Mark Warner (D-VA)rn which would wind down Freddie Mac and Fannie Mae within the next fivernyears and establish a government reinsurance agency in their place.  While both statements welcome the bill, they’re careful to frame it in the context of a “rough draft”–serving as a starting point for the long road ahead.  </p

DavidrnH. Stevens, president and CEO of the Mortgage Bankers Associationrn(MBA) said the bill represents anrnimportant step in redefining the government’s role in housing financernand a positive framework for discussion. He commended the two Senaternsponsors for taking “a thoughtful andrncomprehensive approach to drafting a bill to restructure thernsecondary mortgage market in a way that provides sufficient liquidityrnto the market so that lenders can offer a full range of sustainablernmortgage credit to qualified borrowers through all marketrnconditions.”     </p

Stevensrncalled the bill a starting point and said MBA is eager to work withrnthe Senate Banking Committee and the bill’s authors “to improve thernbill in a way that creates a vibrant secondary market capable thatrnworks for lenders of all sizes and business models so they canrnsupport both the owner-occupied and the multifamily rental housingrnmarkets.”</p

In a separate statement, the FHFA also welcomed the introduction of the bill, saying it will  “help frame the policy debate on the future of the country’s housing finance system. Fannie Mae and Freddie Mac have been in conservatorship for almost five years and Congressional action is needed to resolve this situation and expand private sector participation in the U.S. housing finance market.  We look forward to working with members of both the Senate and House as the legislative process moves forward.”

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About the Author

devteam

Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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