The Mortgage Bankers Association (MBA) expressed its support for the Federal Housing Finance Agency's (FHFA) proposals issued today on the next steps in GSE conservatorship.
For a full text of the FHFA plan, please click here.
David Stevens, president and CEO of the MBA, issued a statement saying that the trade group welcomes FHFA's proposals.
"We have been out front on GSE reform issues, and our Council on Ensuring Mortgage Liquidity outlined many of these same types of changes in its September 2009 proposal on the future of the government's role in the secondary mortgage market," Stevens stated. "We greatly appreciate the constructive nature of the proposals outlined by FHFA Acting Director Ed DeMarco to wind down Fannie and Freddie, only after taking steps to create a new infrastructure for the secondary mortgage market."
He added that moving forward with a single security, aligning servicing requirements with limiting the agency's retained portfolios and at the same time avoiding a fire sale are all initiatives that the MBA have supported.
"We look forward to working with policymakers, including FHFA, to refine the roles of the GSEs and to bring private capital back to the market," Stevens said.
According to Stevens, uncertainty, wherever it exists, should be taken out and a clear path must be laid out so that the U.S. housing market can become strong and vibrant. "This proposal that FHFA is putting forth shows a strong commitment to doing just that," he said.
For a related story on StructuredFinanceNews.com, please click here.