ICBA Statement on Capital Proposal from FHFA Director Mel Watt
Washington, D.C (May 24, 2018)—Independent Community Bankers of America® (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on a proposal from Federal Housing Finance Agency Director Mel Watt to develop new risk-based and minimum-leverage capital rules for Fannie Mae and Freddie Mac.
“ICBA strongly supports FHFA Director Mel Watt’s comments regarding the development of a new risk-based capital and minimum-leverage capital rule for Fannie Mae and Freddie Mac. ICBA has vocally urged Director Watt to require the government-sponsored enterprises to develop and implement a recapitalization plan, as required by the Housing and Economic Recovery Act of 2008. Establishing these capital standards for both GSEs is the first step in that process, which ICBA hopes will eventually lead to their full recapitalization.
“Only a strongly capitalized secondary market can protect taxpayers and provide the liquidity needed to support the mortgage market. Community banks count on the liquidity that the GSEs provide to help meet the home-lending needs of their communities. ICBA looks forward to continuing to work with policymakers to ensure housing-finance reform meets the needs of all borrowers and lenders.”
The Independent Community Bankers of America®, the nation’s voice for nearly 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.