In the new white paper, the trade group approaches the question of the government-sponsored enterprises (GSEs) by proposing a new structure that increases higher levels of risk-bearing private capital into the mortgage system while slashing the existing system’s level of government support. The MBA also seeks the introduction of multiple guarantors that will operate as privately-owned utilities and a new federally-backed Mortgage Insurance Fund for the mortgage-backed securities.
Furthermore, the MBA insisted that its plan would “meet the needs of the full continuum of households, from families requiring the most directly subsidized, affordable rental homes to those served by the completely private jumbo single-family lending market.” Both the new white paper and the earlier publication are based on the work of MBA's Task Force for a Future Secondary Mortgage Market.
“Key leaders on Capitol Hill and in the new administration have made it clear that GSE reform should be accomplished through bipartisan legislation,” said David H. Stevens, the MBA’s president and CEO. “While progress has been made during conservatorship, only Congress has the power to ensure lasting reform.”
“Housing Finance Reform is the most important issue facing the housing market. Today, the Mortgage Bankers Association (MBA) presented a proposal that is a very thoughtful and constructive contribution to the housing finance reform debate," said Leo Pareja, president of The National Association of Hispanic Real Estate Professionals (NAHREP)
. "Considering that Hispanics currently represent roughly 40 percent of the nation’s first-time homebuyer population, NAHREP was particularly pleased with the MBA’s formidable attention to affordable housing. Congress needs to prioritize Housing Finance Reform and should seriously consider many of the principles laid out by the MBA in their deliberations.”