Washington, D.C (Sept. 30, 2019)—Independent Community Bankers of America® (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on today’s Federal Housing Finance Agency announcement that Fannie Mae and Freddie Mac will be allowed to retain a combined $45 billion in capital.
“ICBA and the nation’s community banks strongly support today's agreement between the Federal Housing Finance Agency and Treasury Department to begin recapitalizing Fannie Mae and Freddie Mac. Allowing the government-sponsored enterprises to retain a combined $45 billion in earnings is a crucial step in winding down their conservatorship and ending the net-worth sweep of their earnings into government coffers.
"These long-time community bank priorities—as detailed in ICBA’s Principles for GSE Reform white paper—are required by the Housing and Economic Recovery Act to protect taxpayers and increase stability in the housing market.
"Community banks depend on the liquidity provided by the GSEs and competitive access to the secondary market, which permits them to meet the housing needs of their communities without having to sell their loans to Wall Street institutions that compete for their customers.
"As the debate over housing-finance reform continues, ICBA looks forward to continuing to work with the Trump administration, the FHFA and Congress to advance reforms that preserve community bank access to the secondary mortgage market, support the nation's housing market, and benefit local communities nationwide."
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. With more than 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ nearly 750,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5 trillion in assets, nearly $4 trillion in deposits, and more than $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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