NCRC Statement on Updates to Common Securitization Platform

WASHINGTON, D.C. – September 16, 2015 – (RealEstateRama) — In reaction to updates to the Common Securitization Platform released by the Federal Housing Finance Agency (FHFA), NCRC President and CEO John Taylor made the following statement:

“The potential that the Common Securitization Platform (CSP) will be opened up in the future to entities other than governnment-sponsored enterprises — Fannie Mae and Freddie Mac — raises serious questions about whether those entities will be subject to affordable housing goals and a Duty to Serve underserved markets as Fannie and Freddie currently are.”

“For this reason, NCRC opposes provisions offered by Senator Shelby that would open the CSP to issuers other than the Enterprises. We are also concerned about FHFA’s plans announced today to set up Common Securitization Solutions (CSS) with its own corporate functions next year. CSS is a joint venture currently owned by Fannie Mae and Freddie Mac and charged with developing the CSP. It moves the CSP one step closer to being a government sponsored and supported secondary market facility that operates separate from the Enterprises and without the affirmative obligations to serve traditionally underserved markets.”

“In any future system, it’s critical that any government-sponsored or supported secondary market facility operating with an explicit or implicit government guarantee be accompanied by an affirmative obligation to provide access to all creditworthy borrowers.”
“Fannie Mae and Freddie Mac, by virtue of their charter and their affordable housing goals, have served a valuable public purpose for many years, and helped many families become homeowners and enter the middle class. It’s important that this not be lost in a future housing finance system.”

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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.

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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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