Washington, D.C. (March 28, 2019)—Independent Community Bankers of America® (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on President Donald Trump’s memorandum to Treasury Secretary Steven Mnuchin calling for a comprehensive plan on housing-finance reform.
“ICBA strongly supports the Trump administration’s call for housing-finance reform as outlined in yesterday’s memo to Treasury Secretary Steven Mnuchin and other departments involved with housing finance.
“The memo directing the Treasury Secretary to work with the Federal Housing Finance Agency, Department of Housing and Urban Development, and Ginnie Mae to develop a comprehensive plan on all aspects of the government-supported housing market specifically calls for ending the conservatorship of Fannie Mae and Freddie Mac. Further, the administration is directing Treasury to work with the FHFA in developing an appropriate capital plan for the government-sponsored enterprises based on a capital framework that will protect taxpayers from any future bailouts and provide stability and access to the secondary market for all lenders.
“As detailed in ICBA’s Principles for GSE Reform white paper and this week’s written statement to the Senate Banking Committee, community banks have long supported ending the net-worth sweep of GSE earnings and recapitalizing them. These reforms are required by the Housing and Economic Recovery Act and can be accomplished administratively by the FHFA and Treasury. This will immediately better protect taxpayers by increasing the capital held by the GSEs.
“President Trump’s memo directs the Treasury secretary to pursue both administrative and legislative actions in achieving the goal of housing-finance reform and ending the decade-long conservatorship of Fannie and Freddie. ICBA stands ready to work with the administration, Treasury, FHFA and Congress on achieving this goal.”
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. With more than 52,000 locations nationwide, community banks constitute 99 percent of all banks, employ more than 760,000 Americans and are the only physical banking presence in one in five U.S. counties. Holding more than $4.9 trillion in assets, $3.9 trillion in deposits, and $3.4 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.
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