Trade Groups Make New Push on GSE Reform

Trade Groups Make New Push on GSE Reform

September 5, 2018
Mortgage Bankers Association (MBA) President and CEO Robert Broeksmit acknowledged and defended a news report that he successfully lobbied Treasury Secretary Steve Mnuchin
A coalition of housing, mortgage financial services trade organizations have issued a public letter to the Trump Administration and congressional leaders asking that reform efforts involving the government-sponsored enterprises (GSEs) be given a new degree of priority.
As the 10th anniversary of the federal conservatorship of the GSEs approach, the trade groups acknowledged that the housing market has recovered from the 2008 recession despite having Fannie Mae and Freddie Mac in a “limbo status.” While not offering a specific reform agenda, the trade groups insisted that “the private market will be able to establish a more permanent and reliable presence in housing finance” if the conservator status of the GSEs was brought to a responsible close that would protect lenders, investors and homeowners.
“Housing is simply too important to our national economy and our local communities to risk disruption of the system by which it is financed,” the trade groups stated.
Among the organizations signing the letter were the Center for Responsible Lending, Community Mortgage Lenders of America, the Credit Union National Association, the Manufactured Housing Institute, the Mortgage Bankers Association and the National Association of Realtors.