WASHINGTON, D.C. – October 23, 2015 – (RealEstateRama) — David H. Stevens, CMB, President and CEO of the Mortgage Bankers Association (MBA), issued the following statement applauding the introduction of H.R. 3808, legislation to require the withdrawal and study of the Federal Housing Finance Agency’s proposed rule on Federal Home Loan Bank membership, introduced by Representatives Blaine Luetkemeyer (R-MO), Denny Heck (D-WA), Patrick McHenry (R-NC), and John Carney (D-DE):
“The Federal Home Loan Bank System is a critical part of our housing infrastructure, providing its members with a strong, reliable source of capital to serve the housing needs of their communities. This legislation would preserve today’s membership and prevent costly disruption by ensuring community banks and captive insurers remain members of their regional Home Loan Bank.
“Captive insurers facilitate substantial investment in the housing finance market, including by financing the origination and purchase of mortgages and mortgage-backed securities by Real Estate Investment Trusts (REITs). Mortgage REITs represent a growing and necessary segment of the housing finance market, and their access to the Federal Home Loan Bank System facilitates greater credit availability while simultaneously reducing financial risk to the taxpayer.
“Policymakers and stakeholders must work together to ensure that the System is able to best serve the needs of our evolving housing finance market.”
Rob Van Raaphorst
(202) 557- 2799