ICBA Statement on Testimony from FHFA Director Mel Watt
Washington, D.C (Oct. 3, 2017)—Independent Community Bankers of America® (ICBA) President and CEO Camden R. Fine issued the following statement on today’s congressional testimony from Federal Housing Finance Agency Director Melvin Watt.
“ICBA is encouraged by FHFA Director Mel Watt’s statement that the agency is considering actions to prevent Fannie Mae and Freddie Mac from having to take a draw from the U.S. Treasury. ICBA and the nation’s community banks urge Director Watt to avert a taxpayer-funded draw by one or both government-sponsored enterprises by directing them to retain their earnings to build a capital buffer.
“Fannie Mae and Freddie Mac are critical providers of liquidity in the secondary mortgage market for community banks and other lenders, large and small. Director Watt’s concern with the possible negative market reaction to a Treasury draw is well-founded. As the GSEs’ safety and soundness regulator, Director Watt should take all necessary steps to prevent another taxpayer bailout.”
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.