NCRC, NAACP, LULAC Call on Obama Administration to Recapitalize, Continue Reforms of Fannie and Freddie

Washington, DC – October 30, 2015 – (RealEstateRama) — Several national groups sent a letter to President Obama urging the Administration to rethink its position on the recapitalization of the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac and calling for their continued reform. The letter is in response to comments last week from Jacob Lew, Secretary of the U.S. Department of the Treasury, and Antonio Weiss, Counselor to the Secretary of the U.S. Department of the Treasury, that seemingly suggested that the Obama Administration would not consider recapitalization of the GSEs.

“The most sensible path forward for the housing finance system is to recapitalize Fannie and Freddie, take them out of conservatorship, and to build on the reforms of strong supervision and oversight of the Enterprises started in 2008 with the passage of the Housing and Economic Recovery Act,” said National Community Reinvestment Coalition (NCRC) President and CEO John Taylor. “We agree with the Administration that there are a number of reforms still needed in the secondary mortgage market, but the answer does not lie in scrapping Fannie Mae and Freddie Mac. They can and should be recapitalized; they can and should be fixed,” said Taylor. “Fannie and Freddie, through their charters, their affordable housing goals and the products they offer, have played a critical role in creating homeownership opportunities and building the middle class in America. We simply cannot stand by and face losing their affirmative obligations to serve, especially when Congress does not have a viable, coherent plan that would better serve working families.”

“We anticipate several others in the housing advocacy and lender community will also be expressing similar thoughts about recapitalization and the future of Fannie Mae and Freddie Mac in the coming days.”

NCRC’s previous statements, letters and papers on housing finance reform can be found here.

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The National Community Reinvestment Coalition (NCRC) was formed in 1990 by national, regional, and local organizations to develop and harness the collective energies of community reinvestment organizations from across the country so as to increase the flow of private capital into traditionally underserved communities. 

NCRC has grown to an association of more than 600 community-based organizations that promote access to basic banking services including credit and savings, to create and sustain affordable housing, job development and vibrant communities for America's working families.

Contact:

NCRC
727 15th Street, Suite 900
Washington DC 20005

Phone: 202 628-8866
Fax: 202 628-9800

Media contact:
Jesse Van Tol
Phone: (202) 464-2709

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