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ICBA Statement on Subprime Mortgage Solutions

Washington, D.C. (April 17, 2007)—Camden Fine, president and CEO of the Independent Community Bankers of America (ICBA), issued the following statement after Fannie Mae and Freddie Mac testified in a congressional hearing that the two government-sponsored agencies (GSEs) are developing initiatives to help subprime mortgage borrowers:

"ICBA commends Fannie Mae and Freddie Mac for working on solutions to help subprime borrowers refinance their current mortgages. These initiatives will give community banks more options to help troubled borrowers who come to them for assistance. The GSEs can play an important role in helping to stabilize the market, help troubled borrowers and develop better subprime mortgage products. Their actions will encourage other dominant market participants to look at their products and underwriting standards to find similar ways to address borrower problems and keep credit flowing to borrowers with less than perfect credit.

"Defaults and foreclosures are devastating to the individual families involved, as well as the communities as a whole. By stepping in now and developing new refinancing options and providing solutions for families who have purchased and want to keep their home, the GSEs are fulfilling their mission to provide stability, liquidity and capital in the secondary market."