NCRC Reacts to FHFA Director Mel Watt’s Remarks at the Bipartisan Policy Center

Washington – (RealEstateRama) — Today, in response to Federal Housing Finance Agency Director (FHFA) Mel Watt’s remarks at the Bipartisan Policy Center regarding the conservatorship of the government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, the National Community Reinvestment Coalition’s President and CEO John Taylor made the following statement.

Search for Housing Search for Public Real Estate

“We are pleased that Director Watt has acknowledged that the current trajectory for the government-sponsored enterprises (GSEs) in conservatorship is not tenable. The wind down of Fannie Mae and Freddie Mac directly impacts the obligation they have to facilitate affordable housing and affordable mortgage credit for low- and moderate-income (LMI) communities.”

“With a capital buffer declining to zero and with reduced income from the enterprises’ declining retained portfolios, the mission of the enterprises is in serious jeopardy.”
“Today, LMI borrowers across the country are paying guarantee fees consistent with the enterprises holding a capital buffer of over 2%, yet they are not allowed to retain that capital, and LMI communities are getting much less commitment from Fannie Mae and Freddie Mac.”

“FHFA’s response to the fact that so many creditworthy borrowers in LMI communities and minority communities across the country cannot access conventional mortgage credit has certainly been better under Director Watt, but it is still not enough to ensure that the GSEs are able to fulfill their mission.”

“We agree with Director Watt that the Fannie and Freddie conservatorship is unsustainable. It’s clear that action must be taken to recapitalize the GSEs and ultimately end the conservatorship.”

Last year, NCRC released a white paper calling for the recapitalization and continued reforms of the GSEs.

###

About NCRC:
NCRC and its grassroots member organizations create opportunities for people to build wealth. We work with community leaders, policymakers and financial institutions to champion fairness in banking, housing and business development.

SHARE
NCRC

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

Previous articleHDC welcomes Joni Hartmann as HDC Community Fund Executive Director and HDC Deputy Director.
Next articleCHAPA’s Spring 2016 Regional Meetings