News Column

FSR Welcomes Mel Watt's Plans for FHFA; Urges Congress to Reform the GSEs

May 13, 2014



WASHINGTON, May 13 -- The Financial Services Roundtable issued the following news release:

The Financial Services Roundtable (FSR) and its Housing Policy Council (HPC) released the following statement on Federal Housing Finance Agency Director Mel Watt's first public speech as the new agency head today:

"We congratulate Director Watt on his thoughtful approach to FHFA's priorities for the GSEs moving forward," said HPC President John Dalton. "We urge FHFA to work to ensure that Fannie Mae and Freddie Mac help stabilize and strengthen our nation's housing market and create an environment for longer-term reforms."

While FHFA can help stabilize the present system, reform for the future is still needed. Over 5 years have passed since the government put Fannie and Freddie under conservatorship, leaving taxpayers on the hook and exposed.

Congress should not give up on legislation to create a long-term plan for winding down Fannie and Freddie and returning the housing market to a system based on more private capital and participants.

FSR and HPC are encouraged by Director Watt's comments on a number of issues including the GSE's representations and warranties policies and the goals of a common securitization platform and single security. The recently announced changes to reps and warranties are a positive first step and more can be done to address those issues to ensure lender confidence in originating loans for the GSEs.

For more information, contact Alison Hawkins at Alison.Hawkins@FSRoundtable.org.

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Source: Targeted News Service


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