MBA's Stevens Critical of FHFA Securitization Platform Proposal

by devteam March 6th, 2013 | Share

The Mortgage Bankers Association (MBA) hasrnreacted harshly to an announcement made yesterday by Edward J. DeMarco, ActingrnDirector of the Federal Housing Finance Agency. rnIn a speech</abefore an economic conference DeMarco said that FHFA, in its role asrnconservator of Freddie Mac and Fannie Mae (the GSEs) would be setting up anrnindependent business entity to manage a new securitization platform for thernsecondary market.  </p

MBA’s President and CEO David H. Stevens</bissued a formal statement this afternoon which said the concept of a singlernsecuritization platform further highlighted the need for a comprehensive discussionrnamong policymakers and stakeholders about the future of the GSEs and thernpotential role of the government in housing markets. </p

Stevens said, “Piecemeal proposals without arnbroader framework create uncertainty and raise more questions than theyrnanswer.  This latest proposal of a single platform and a new entity (ownedrnand funded by Fannie Mae and Freddie Mac) to manage it, is just one piece of arnmuch larger puzzle that impacts borrowers, lenders and the market as arnwhole.  What is the ultimate objective?  How would the creation ofrnthis new entity, owned by Fannie Mae and Freddie Mac, impact their potentialrnrestructuring and how would it affect other market players like FHA and privaterninvestors?”</p

He complained that, in the four years sincernFreddie Mac and Fannie Mae were placed into conservatorship there have beenrncountless proposals and ideas put forth by MBA and others on ways tornrestructure the secondary market and that it is now time for action.  “Proposals of this magnitude, he said, “needrna transparent process to engage with stakeholders, articulate objectives andrnalternatives, and demonstrate that stakeholder concerns have been evaluated andrnaddressed.”  It is time for Congress and regulators to involve otherrnstakeholders and “move the ball forward. rnUntil this happens, the uncertainty in the markets will persist, and arnfull recovery of the housing market will remain elusive.”

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About the Author


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

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