FOR IMMEDIATE RELEASE
ICBA Statement on FHFA Single Security Proposal
Washington, D.C. (August 13, 2014)—Camden R. Fine, president and CEO of the Independent Community Bankers of America® (ICBA), released this statement following the Federal Housing Finance Agency’s (FHFA) request for input on the proposed structure for a Single Security that would be issued and guaranteed by Fannie Mae or Freddie Mac.
“Community banks that sell to the government sponsored enterprises (GSE) typically only sell to one GSE. This means that community banks wouldn’t likely see the trading difference between the securities as they sell their loans for cash rather than create mortgage-backed securities pools.
“Since community banks are investors in GSE securities, ICBA will review the proposal carefully to ensure that the marketability of the current GSE mortgage-backed security is preserved while balancing the price execution components for those institutions selling loans to the GSEs.”
The Independent Community Bankers of America®, the nation’s voice for more than 6,500 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.