A detailed summary of the Federal Reserve’s policyrnoutline can be read here.</p

David H. Stevens, President andrnCEO of MBA, issued a statement on behalf of the Association which said, inrnpart: </p

“The Fed’s white paper is a thoughtful document that raises arnnumber of very interesting issues that policymakers ought to consider as theyrnseek to solve the ongoing ills of the housing market.  The Fed staff’srncomments validate much of what we have been saying, as it relates to thernbalance between credit availability and consumer protection, as well as thernrole that Fannie Mae and Freddie Mac could play in stabilizing and revitalizingrnthe mortgage market.  </p

“FHFA is tasked with preserving the assets and minimizing thernnear-term losses of Fannie Mae and Freddie Mac.  However, at the samerntime, Fannie and Freddie are the dominant players in the mortgage market and wernagree with the Fed that, if allowed, could take steps that would benefit thernmarkets by helping homeowners and making affordable credit more available forrnqualified borrowers.  Among those could be initiatives that may increasernshort term losses, but have long-term benefits for the housing market.

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