CMLA Statement on Mel Watt Testimony before Senate Banking Committee

Glen Corso Advocacy, Regulatory

CMLA issued the following statement regarding FHFA Director Mel Watt’s May 11, 2017 testimony before the Senate Banking Committee:

CMLA applauds FHFA Director Mel Watt’s testimony to Congress today that operating Fannie Mae and Freddie Mac with virtually no capital posed a safety and soundness issue that he, as prudential regulator, needed to address. We urge Director Watt to immediately take appropriate steps to permit Fannie and Freddie to begin building a capital buffer to forestall a future draw on the Treasury line of credit. Given the key role Fannie and Freddie play in assuring affordable mortgages for American consumers, it would be irresponsible for the prudential regulator to permit Fannie and Freddie’s capital to dwindle to an amount less than the smallest lenders in this country are required to maintain.

Glen CorsoCMLA Statement on Mel Watt Testimony before Senate Banking Committee