MBA Seeks Re-Charter of GSEs

MBA headquarters in Washington, DC. (Photo: Vornado Realty Trust)

WASHINGTON, DC—The Mortgage Bankers Association on Tuesday called on Congress to re-charter Fannie Mae and Freddie Mac as part of the association’s approach to secondary mortgage market reform. MBA issued its recommendations in a paper titled “GSE Reform Principles and Guardrails” that’s intended to serve as an introduction to its position; more detail on the association’s vision for an end-state model for Fannie and Freddie, affordable housing strategy and recommended transition steps is expected to be provided in April.

“Comprehensive reform of Fannie Mae and Freddie Mac (the GSEs) remains the final piece of unfinished business from the financial crisis,” according to .the MBA paper. “Administrative reforms undertaken by the Federal Housing Finance Agency (FHFA) have made tremendous progress in stabilizing the companies while paving the way for future reform. Yet, the GSEs remain in conservatorship with no clear path forward. Over the years, various proposals introduced in both the House and Senate have yielded productive discussions but have stumbled for a variety of reasons, including complexity, fears of exacerbating the impact of credit or economic cycles, or the perceived lack of a sufficient affordable housing strategy.”