MBA Statement on Freddie Mac’s Credit-Risk Transfer Offering

WASHINGTON, D.C. (September 28, 2016) – (RealEstateRama) — David H. Stevens, CMB, President and CEO of the Mortgage Bankers Association (MBA), issued the following statement on Freddie Mac’s new credit-risk transfer offering:

“MBA appreciates Freddie Mac’s efforts to bring more private capital into the market through the credit-risk transfer offering they recently announced. In this early stage of the credit risk transfer market, it is important to experiment with different transactions and structure types to evaluate their long term economic and competitive impact. Mortgage insurance offers a well-developed, scalable solution that would benefit consumers and is something that all lenders could use today.

MBA

“Going forward, we would like to see FHFA and the GSEs take advantage of the existing lender-MI company relationships to share risk through deeper loan level primary mortgage insurance, as opposed to the GSE negotiated version that they just rolled out. Otherwise, we are wasting the competitive value of mortgage insurance companies both working directly with lenders, as well as being able to pass value directly to consumers.”

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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