ICBA supports finance board plan for affordable housing MortgagePress.comICBA, Independent Community Bankers of America, Federal Housing Finance Board, Ann Grochala
The Independent Community Bankers of America (ICBA) supports the
Federal Housing Finance Board's (FHFB) proposal to use Affordable
Housing Program (AHP) subsidies--available through the Federal Home
Loan Banks (FHLBs)--to help homeowners struggling with the burdens
of unaffordable mortgages.
"This is another way for the Federal Home Loan Banks to support
housing and use their resources to help homeowners stay in their
homes during this difficult time," said Ann Grochala, ICBA's
director of lending and accounting policy, in a comment letter to
the FHFB. The FHFB proposes to temporarily allow FHLB members to
use a portion of AHP subsidies to refinance or restructure eligible
households' non-traditional or sub-prime owner-occupied
ICBA also called on the FHFB to ensure that AHP subsidies are
"ICBA urges the finance board to ensure that the final rule
contains the appropriate safeguards to ensure that AHP subsidies
help homeowners in trouble, not bail out the irresponsible lenders
that put them there, said Grochala. "Unfortunately, some lenders
used predatory practices and were more concerned about making the
loan than ensuring that it was an affordable loan for the borrower.
The result has been too many homeowners across the country facing
foreclosure. ICBA agrees with the Finance Board's position that AHP
subsidies should not be used to compensate FHLB members for
earnings foregone on the original loan, particularly when a loan
may have carried an interest rate well above market rates."
For a copy of ICBA's comment letter to the FHFB, click here.