MBA Statement on FHFA Establishing Limited Capital Cushion

MBA Statement on FHFA Establishing Limited Capital Cushion

WASHINGTON, D.C. (December 22, 2017) – (RealEstateRama) — David H. Stevens, CMB, President and CEO of the Mortgage Bankers Association, offered the following statement regarding FHFA’s decision to allow the GSEs to build a limited capital cushion.

“Director Watt has expressed significant concern regarding the lack of a capital cushion at the enterprises. Establishing this defined $3bb buffer is a measured response and will create enough cushion for general accounting losses, aside from the impacts resulting from the latest tax legislation. This negotiated outcome is far better than the Director taking unilateral action and should put to rest calls for indefinite retention of earnings. Now that this issue is settled, it is time to focus our attention on the legislative actions being contemplated in the Senate and the House to resolve this conservatorship through congressional reform.”

CONTACT
Rob Van Raaphorst

(202) 557- 2799

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MBA

The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,400 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field.

Contact:

Mortgage Bankers Association
1331 L Street, NW
Washington, DC 20005

Phone: (202) 557-2700

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