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ICBA Statement on Johnson-Crapo Agreement on Housing-Finance Reform

Washington, D.C. (March 11, 2014)The Independent Community Bankers of America® (ICBA) today said it appreciates the bipartisan efforts of  Senate Banking Committee Chairman Tim Johnson (D-S.D.) and Ranking Member Mike Crapo (R-Idaho) in reaching an agreement on core principles for reforming the housing-finance system and secondary mortgage market. ICBA strongly supports continued community bank access to a financially strong, reliable and impartial secondary mortgage market to ensure the continued flow of mortgage credit to consumers nationwide.

“ICBA is encouraged by provisions of the draft Johnson-Crapo plan that would specifically support continued access for community banks to successfully securitize and sell their loans,” ICBA President and CEO Camden R. Fine said. “Community banks must continue to be able to sell individual loans for cash and have the option to retain the servicing on those loans to maintain access and participation in the secondary market.”

Any viable plan to reform the secondary mortgage market must be acceptable to the community banking sector to be successful.  To ensure continued community bank access to the secondary mortgage market, ICBA will continue to make certain any congressional reforms to the housing government-sponsored enterprises: 

  • allow community banks to sell loans through an independent entity that does not compete with community banks,
  • do not appropriate community bank customer data for cross-selling of financial services,
  • preserve the Federal Home Loan Banks as a community bank access point to the national secondary market,
  • ensure pricing of any government guaranty is fair and equal for all market participants regardless of volume of loans guaranteed, and
  • do not result in the consolidation of the housing-finance system to only a select few mega-financial institutions.

ICBA looks forward to reviewing and studying the text of the legislation when it is released and will work to ensure housing-finance reforms meet these principles. The association looks forward to continuing to work with Congress and the administration to ensure continued access for community banks and to avoid further concentration of the banking industry.

About ICBA
The Independent Community Bankers of America®, the nation’s voice for nearly 7,000 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.

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