“Fannie Mae and Freddie Mac are critically important to modern mortgage financing, and MBA supports the role the GSEs play in maintaining and improving liquidity and stability in the secondary mortgage market” said Mr. Robbins.  “MBA has long advocated GSE regulatory reform to ensure that they are operating in a safe and sound manner, engaging only in activities that are consistent with their charter purposes, and are subject to reasonable affordable housing goals that do not distort the market.”

“There seems to be general agreement on the fundamental tools a new regulator will need.  MBA is particularly interested in the powers of the regulator related to the review and approval of GSE activities, ongoing and new.  Today, it is unclear whether certain current GSE activities are actually permitted.  The new regulator needs sufficient authority to solve this problem.”  

Robbins further commented on other components of proposed GSE reform legislation.

“We appreciate that H.R. 1427 calculates the size of the contribution to the affordable housing fund on the GSEs’ portfolios rather than on net income.  MBA also believes the GSEs need the flexibility to adjust their portfolios to changing conditions and marketplace needs.”

Robbins’ full testimony can be found at www.mortgagebankers.org.

###

The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 370,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,400 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site:  www.mortgagebankers.org.