Skip to main content

ICBA Offers GSE Reform White Paper

Apr 25, 2017
The Independent Community Bankers of America (ICBA) has become the latest trade group to offer a white paper offering a strategy to resolve the future of the government-sponsored enterprises (GSEs)

The Independent Community Bankers of America (ICBA) has become the latest trade group to offer a white paper offering a strategy to resolve the future of the government-sponsored enterprises (GSEs).
 
In its white paper, the ICBA proposes that the federal government allow the GSEs to rebuild their capital buffers while reducing the risks posed to the GSEs by credit-risk transfers. The white paper also envisions the Federal Housing Finance Agency ending the GSEs’ net-worth sweep while establishing capital-restoration plans, and delaying the launch of its Uniform Mortgage Backed Security until the GSEs are recapitalized and released from conservatorship. It also seeks a new catastrophic mortgage insurance fund for GSE securities and changing the GSEs into regulated and shareholder-owned financial utilities.
 
 
“Community banks depend on Fannie Mae and Freddie Mac for direct access to the secondary mortgage market, which promotes lending in local communities and offers an alternative to the largest and riskiest financial institutions,” said ICBA President and CEO Camden R. Fine. “ICBA and the nation’s community bankers urge Congress and the Trump administration to end the destructive sweep of the GSEs’ earnings directly to government coffers, put the GSEs on sound financial footing, support equitable access to the housing-finance system, and protect taxpayers from another housing crisis.”

 
About the author
Published
Apr 25, 2017
Fed Rate Could Be Down To 4.6% By Year's End

Inflation must hit its 2% goal for Fed to reduce rates.

New Compliance Requirements Add Challenges

Latest changes arrive at an already disruptive time in the mortgage industry

Changes Coming For Investment Properties

Using leases to qualify will require Proof

FCC Adopts New Rules To Close The 'Lead Generator Loophole'

Mortgage lead providers respond, saying this will "wipe out" several small and mid-tier businesses

Trade Associations & Lenders Stand Behind Trigger Leads Bill

Major trade associations like The MBA, NAMB, and BAC, urge action on S. 3502.

Supply And Demand Are Still Alive And Well

Treasury auctions may face weaker demand but they’re still getting done