CMLA Issues GSE Reform Policy: Reform, Recapitalize and Regulate

 
 
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Fannie Mae
Freddie Mac
Mortgage Finance

Industry:
Finance

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Washington - District of Columbia - US

WASHINGTON - April 6, 2016 - PRLog -- The CMLA today released its new policy on GSE reform in a move that signals the next round of debates on housing reform.

"The time has come to move ahead on GSE reform. The flaws that led to conservatorship have been identified in the GSEs' business and operational models, and we know how to fix them. Collectively we need to take the necessary steps to transform the GSEs into well-regulated utilities providing liquidity equally to lenders of all sizes, to serve the mortgage financing needs of homebuyers," said Brooke Anderson Tompkins, CMLA Chair. "We neither need gigantic, complicated reconstructions of the secondary mortgage market nor the creation of new entities. Whether by design, or unintended consequence, such plans will cement Wall Street and the big bank lenders into dominant positions in the market and relegate the small and mid-size lenders who are so ably serving consumers today, to the sidelines. We need to take what has worked so well for decades, address the shortcomings and act," Chair Anderson Tompkins added.

The CMLA policy includes reforms of both GSEs that will recapitalize and reform both Fannie Mae and Freddie Mac and, specifically:

Ø  Preserve equal, capital markets access for independent, community-based lenders

Ø  Convert GSEs into utilities that provide liquidity and products to lenders that will allow them to serve the home financing needs of consumers

Ø  Ensure the GSEs will continue to serve community-based, independent lenders on an equal basis - i.e. pricing and other terms equal for ­ lenders

Ø  Establish a comprehensive regulatory framework that will focus GSE purchase and securitization activity on traditional mortgage products underwritten to appropriate standards, with flexibility to address affordability, particularly for first time and minority buyers

A link to the text of the CMLA policy may be accessed here (http://thecmla.com/cmla/wp-content/uploads/2016/04/cmla-2...).

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About the CMLA

CMLA is the only trade association solely dedicated to advocating for independent, community-based 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 residential 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 925.323.7084.

Press Contact:

Anita Willis

Anita.Willis@Comcast.net

240.432.7798

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Source:Community Mortgage Lenders of America
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Tags:Fannie Mae, Freddie Mac, Mortgage Finance
Industry:Finance
Location:Washington - District of Columbia - United States
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