FOR IMMEDIATE RELEASE
ICBA Issues Statement on Bipartisan Senate Bill To Reform the Secondary Mortgage Market
Washington, D.C. (June 25, 2013)—The Independent Community Bankers of America® (ICBA) released this statement following the introduction of legislation by Sens. Mark Warner (D-Va.), Bob Corker (R-Tenn.), Jon Tester (D-Mont.), Mike Johanns (R-Neb.), Kay Hagan (D-N.C.), Jerry Moran (R-Kan.), Dean Heller (R-Nev.) and Heidi Heitkamp (D-N.D.) to replace Fannie Mae, Freddie Mac and the Federal Housing Finance Agency with a new Federal Mortgage Insurance Corp. to regulate the secondary market and Federal Home Loan Banks and to provide a catastrophic guarantee for certain mortgage-backed securities.
“ICBA commends the bipartisan efforts of Sens. Warner, Corker, Tester, Johanns, Hagan, Moran, Heller and Heitkamp for introducing legislation to reform the housing government-sponsored enterprises. Importantly, continued community bank access to a financially strong, reliable and impartial secondary mortgage market is essential to preserving access to mortgage credit in all areas of the country and supporting the housing recovery. All lenders should have equitable access to the secondary market to ensure the continued flow of mortgage credit to consumers nationwide.
“ICBA appreciates and is encouraged by the inclusion of certain provisions in the bill that would help provide access for community banks to the secondary market without requiring them to take on the additional risk and cost of securitizing loans. To maintain community bank access and participation in the secondary market, community banks must be able to sell individual loans for cash and have the option to retain the servicing on those loans.
“Additionally, ICBA continues to call on Congress to ensure that:
- community banks are not forced to sell loans through an aggregator that also competes with community banks,
- no community bank customer data is appropriated for cross-selling of financial services,
- pricing of any government guaranty must be equal for all market participants regardless of volume of loans guaranteed, and
- the function and assets of Freddie Mac and Fannie Mae are not sold or transferred to any other financial institution that aggregates mortgage loans or mortgage-servicing rights or sells financial products to consumers.
“Due to the importance of this issue to Main Street communities, the community banking industry must continue to be closely involved in the process of secondary-market reform. Any and all reforms to the housing-finance system should avoid fostering even greater concentration and risk into a handful of lenders, which would only harm the financial system and consumer choice. As a result, ICBA and the nation’s community banks look forward to continuing to work with Congress on this issue as the debate continues.”
For more information, visit www.icba.org.
The Independent Community Bankers of America®, the nation’s voice for nearly 7,000 community banks of all sizes and charter types, is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education and high-quality products and services. For more information, visit www.icba.org.