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MBA Statement on Fed’s Housing Policy White Paper

WASHINGTON, D.C. – January 10, 2012 – (RealEstateRama) — David H. Stevens, President & CEO of the Mortgage Bankers Association (MBA) issued the following reaction to the white paper released by the Federal Reserve, titled, “The U.S. Housing Market: Current Conditions and Policy Considerations.”

“The Fed’s white paper is a thoughtful document that raises a number of very interesting issues that policymakers ought to consider as they seek to solve the ongoing ills of the housing market. The Fed staff’s comments validate much of what we have been saying, as it relates to the balance between credit availability and consumer protection, as well as the role that Fannie Mae and Freddie Mac could play in stabilizing and revitalizing the mortgage market.

“FHFA is tasked with preserving the assets and minimizing the near-term losses of Fannie Mae and Freddie Mac. However, at the same time, Fannie and Freddie are the dominant players in the mortgage market and we agree with the Fed that, if allowed, could take steps that would benefit the markets by helping homeowners and making affordable credit more available for qualified borrowers. Among those could be initiatives that may increase short term losses, but have long-term benefits for the housing market.

“We continue to urge policymakers to join us in advancing initiatives that will appropriately balance credit availability for qualified borrowers with regulation and protections for consumers that will ensure that the excesses of the past are not allowed to happen again.”


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 2,200 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. For additional information, visit MBA’s Web site: