MBA and FHFA Carefully Applaud Corker/Warner GSE Bill

Both the MBA and FHFA have published responses to the bill introduced by a bipartisan group of senators led by Bob Corker (R-TN) and Mark Warner (D-VA) which would wind down Freddie Mac and Fannie Mae within the next five years and establish a government reinsurance agency in their place.  While both statements welcome the bill, they're careful to frame it in the context of a "rough draft"--serving as a starting point for the long road ahead. 

David H. Stevens, president and CEO of the Mortgage Bankers Association (MBA) said the bill represents an important step in redefining the government's role in housing finance and a positive framework for discussion. He commended the two Senate sponsors for taking "a thoughtful and comprehensive approach to drafting a bill to restructure the secondary mortgage market in a way that provides sufficient liquidity to the market so that lenders can offer a full range of sustainable mortgage credit to qualified borrowers through all market conditions."    

Stevens called the bill a starting point and said MBA is eager to work with the Senate Banking Committee and the bill's authors "to improve the bill in a way that creates a vibrant secondary market capable that works for lenders of all sizes and business models so they can support both the owner-occupied and the multifamily rental housing markets."

In a separate statement, the FHFA also welcomed the introduction of the bill, saying it will  "help frame the policy debate on the future of the country’s housing finance system. Fannie Mae and Freddie Mac have been in conservatorship for almost five years and Congressional action is needed to resolve this situation and expand private sector participation in the U.S. housing finance market.  We look forward to working with members of both the Senate and House as the legislative process moves forward.”