“CMLA applauds the action taken today to allow Fannie Mae and Freddie Mac to maintain a capital buffer. The U.S. Treasury and the Federal Housing Finance Agency are to be commended for their foresight in their prudent decision to permit a $3 billion capital buffer for each enterprise,” said Glen Corso, CMLA Executive Director. “This action should help prevent unnecessary …
As capital dwindles, trouble looms for Fannie Mae and Freddie Mac
Federal Housing Finance Agency (FHFA) Director Mel Watt recently delivered two direct messages to Congress: First, it is dangerous to operate the two institutions that undergird half of the U.S. mortgage market and support over $5 trillion in mortgage backed securities with little to no capital. Second, as the safety and soundness regulator, he intends to take steps to reverse …
CMLA Objects to MBA, ABA Call to Ignore Dwindling GSE Capital, Defer to Congress on GSE Reform
Congressional Action Will Not Come Before GSEs Reach Zero Reserves In a June 8 letter to Watt, a group of the largest housing related trade associations said he should wait on Congress to enact GSE reform legislation. The Mortgage Bankers, the American Bankers and the National Realtors and Home Builder Associations said a “piecemeal approach to reform” (i.e. immediate building …