Washington, D.C (Nov. 30, 2017)—Independent Community Bankers of America® (ICBA) President and CEO Camden R. Fine released this statement on reports that the Federal Housing Finance Agency is meeting with the White House on the ongoing sweep of Fannie Mae and Freddie Mac profits to the U.S. Treasury.
“Fannie Mae and Freddie Mac last month reported more than $7.7 billion in third-quarter net earnings, all of which would be swept into the U.S. Treasury before the end of the year unless the Federal Housing Finance Agency directs otherwise. With this latest profit sweep, the government-sponsored enterprises will have transferred more than $280 billion to the Treasury since 2013—nearly $100 billion more than the capital infusion they received during the Wall Street financial crisis.
“While this arrangement has been a great investment for the Treasury and has compensated taxpayers handsomely, both companies will enter 2018 with zero capital to protect taxpayers and support the mortgage market unless Washington acts. ICBA continues to call on FHFA Director Mel Watt and Treasury Secretary Steve Mnuchin to end this destructive sweep of GSE earnings and to allow both companies to begin to rebuild their capital buffers to avoid another taxpayer bailout. Community banks depend on the liquidity that Fannie Mae and Freddie Mac provide, as do American homebuyers.”
The Independent Community Bankers of America®, the nation’s voice for more than 5,700 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 ICBA’s website at www.icba.org.