CMLA Opposes Piecemal GSE Reform

CMLA Advocacy, Legislation, Press Release

Coalition Letter Urges Congress to avoid Funding Bill Riders

Washington, DC, September 20, 2016 – The Community Mortgage Lenders of America (CMLA), in a joint letter with civil rights organizations, affordable housing groups and business groups, urged Congress to avoid piecemeal reform of Fannie Mae and Freddie Mac through riders to year end funding bills or other must pass legislation. (View this release as a pdf )

“It is now eight years since Congress enacted the Housing and Economic Reform Act (HERA) and subsequently Fannie Mae and Freddie Mac were taken into conservatorship. While We wait for Congress to enact another comprehensive GSE reform bill, we believe that Congress should not adopt individual provisions as riders to an FY 2017 funding bill or other “must-pass” legislation that could bias or tile the final outcome of an ultimate comprehensive GSE reform bill in any particular direction or circumvent a careful effort by FHA and the GSEs to address specific issues. We would note that in June, the MBA, ABA, NAHB, NAR and NHC sent a joint letter to FHFA Director Mel Watt taking a similar approach – arguing that a “piecemeal approach” to GSE reform would be “counterproductive” to the long-term goal of housing finance reform”, the letter stated.

The joint letter cautioned Congress specifically against legislative riders dealing with the Common Securitization Platform (CSP) and risk sharing, pointing out that FHFA is currently addressing both issues in a detailed manner and seeking public input.

“…arbitrary Congressional changes in these two areas,” the letter said, “could negatively affect borrowers and other stakeholders by interfering with affordable housing objectives and with fair secondary market access by small and mid-sized mortgage loan originators.”

The letter was directed to the Republican and Democratic leadership of the Senate Banking and House Financial Services Committees as well as the Senate and House Appropriations Committees.

In addition to the CMLA, the letter was signed by: the Community Home Lenders Association; Corporation for Enterprise Development; Leading Builders of America; Leadership Conference on Civil and Human Rights; National Association for the Advancement of Colored People and the National Community Reinvestment Coalition.

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About the CMLA

CMLA is the only trade association solely dedicated to advocating for independent, communitybased residential mortgage lenders. Founded in 2009, the CMLA is committed to the preservation of a thriving independent mortgage-lending sector, which increases competition in the industry and thus, provides borrowers with greater choice and lower costs. The CMLA membership includes lenders nationwide that, collectively, originate more than $100 billion worth of mortgage loans annually. The CMLA works to ensure the interests of its members are effectively represented before members of Congress, Federal regulators and the Executive branch.

For More information please visit www.thecmla.com and/or direct policy and member inquiries to Glen Corso at 703-467-0420 or gcorso@thecmla.com

CMLACMLA Opposes Piecemal GSE Reform