Washington, D.C. (Nov. 3, 2015)—Independent Community Bankers of America® (ICBA) President and CEO Camden R. Fine today released the following statement on Freddie Mac’s reported $475 million third-quarter net loss.
“Today’s announcement by Freddie Mac that it has incurred a $475 million loss during the third quarter should be a warning that potential future losses by Freddie Mac or Fannie Mae could require additional draws from the U.S. Treasury to prop up their operations.
“ICBA once again urges the Federal Housing Finance Agency to require both government-sponsored enterprises to develop and implement a plan to rebuild their capital. This would support and sustain their operations, and it would protect taxpayers and the U.S. housing market from unnecessary disruptions.
“Siphoning off all earnings to the U.S. Treasury unnecessarily puts both Fannie Mae and Freddie Mac in danger of failure once again. Implementing housing-finance reform while building capital at the enterprises to support their safety and soundness are not mutually exclusive objectives, and they both should be pursued expeditiously.”
The Independent Community Bankers of America®, the nation’s voice for more than 6,000 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.