Washington, D.C (Dec. 21, 2017)—Independent Community Bankers of America® (ICBA) President and CEO Camden R. Fine released this statement on the newly announced $3 billion capital reserve for Fannie Mae and Freddie Mac.
“ICBA and the nation’s more than 5,700 community banks strongly support the Federal Housing Finance Agency and Treasury Department plan to reinstate a $3 billion capital reserve for Fannie Mae and Freddie Mac. ICBA has been an ardent supporter of allowing the government-sponsored enterprises to rebuild their capital buffers, which had been scheduled to drop to zero at the end of the year, to avoid another taxpayer bailout and support the mortgage market.
“Fannie and Freddie 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 sweep of GSE revenue has been a great investment for the federal government, it harms the taxpayers and community banks that depend on the liquidity that Fannie Mae and Freddie Mac provide.
“ICBA thanks the FHFA and Treasury for this important action and looks forward to continuing to work with policymakers on appropriate housing-finance reforms.”
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.