WASHINGTON, D.C. – August 20, 2012 – (RealEstateRama) — David H. Stevens, president and CEO of the Mortgage Bankers Association (MBA), issued the following statement reacting to the U.S. Treasury Department’s announcement of modifications to the Preferred Stock Purchase Agreements (PSPAs) between the Treasury Department and the Federal Housing Finance Agency (FHFA).
“Today’s announcement is a clear and appropriate effort to limit taxpayer exposure resulting from the federal government’s investment in Fannie Mae and Freddie Mac. We support efforts to protect the taxpayers, but want to emphasize the importance of ensuring continued liquidity that will provide the affordable mortgage financing necessary to support the housing market. It is critical that the transition of Fannie Mae and Freddie Mac’s role in financing real estate does not limit the availability, or increase the cost, of financing.
“The announcement also re-emphasizes the importance of policymakers and all stakeholders in the mortgage finance system working together to find a bipartisan, long-term solution for the future of the secondary mortgage market. MBA has been a leader in that dialog and we look forward to continuing to work toward a future system that limits risk to taxpayers, yet appropriately defines a limited federal role to guarantee sufficient mortgage liquidity and availability through all market cycles.”
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: www.mortgagebankers.org.