Logo: Independent Community Bankers of America - ICBA The Nation's Voice for Community Banks (R)
Username:
Password:

Graphic: Arrow Forgot password?
Graphic: Arrow Request Login
Contact ICBA Site Map Search ICBA
ArrowICBA Home
ArrowAbout ICBA
ArrowAbout Community Banking
ArrowAdvocacy
ArrowConsumer Education & Resources
ArrowEducation
ArrowConvention
ArrowIndustry Resources
ArrowMarketing Resources
ArrowMembership
ArrowPress Room
ArrowSocial Media
ArrowMain Street MarketĀ®
ArrowPublications





Members Only = Access Restricted
Last update: 09/16/14

ICBA News Release Header

FOR IMMEDIATE RELEASE

ICBA Testifies on Ensuring Community Bank Access to Robust Secondary Mortgage Market

Washington, D.C. (Nov. 5, 2013)—The Independent Community Bankers of America® (ICBA) today told Congress during the hearing, “Housing Finance Reform: Protecting Small Lender Access to the Secondary Mortgage Market,” that continued community bank access to the secondary mortgage market is essential so these institutions can continue to meet the mortgage-lending needs of consumers. Testifying before the Senate Banking Committee, ICBA Chairman Bill Loving noted that while the current government-sponsored enterprise (GSE) secondary mortgage market structure has worked well for community banks, ICBA welcomes the return to a more balanced and less concentrated housing finance system.

“In reforming the housing finance system,  policymakers must be careful not to create a new system that eradicates liquidity for all but the few largest players, limits access to the market or narrows options for smaller lenders, and imposes requirements that make it too costly for smaller lenders and servicers to participate,” said Loving, who is also president and CEO of Pendleton Community Bank in Franklin, W.Va.

Community banks represent approximately 20 percent of the mortgage market, and nearly 30 percent of community bank respondents in a recent survey said they sell half or more of the mortgages they originate into the secondary market, Loving noted. Any future secondary market structure must preserve the relatively simple process for community banks and other small lenders to ensure their continued robust access to the market, he said.

Loving provided ICBA’s views on several secondary mortgage market issues, including:

  • the fact that ICBA is pleased with the recognition of the unique role of community financial institutions and the ability of these institutions to have straightforward access to the secondary market,
  • the need to preserve the Federal Home Loan Banks as an access point to the national secondary market for community banks,
  • the need to ensure that only loans meeting the “qualified mortgage” definition should be eligible for securitization or sale to the secondary market and contain a government guaranty, and
  • gradually and transparently transitioning from the current GSEs to any new credit enhancement/guarantor structure to prevent the disruption of the flow of funds into the housing market.

For more information, visit www.icba.org/advocacy.

About ICBA
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.






ArrowsPrintable version



Button: Share

All contents copyright 2014 Independent Community Bankers of America. All rights reserved.
Privacy Statement | Legal Notice