ICBA and other groups called on Treasury Secretary Janet Yellen and FHFA Director Mark Calabria to delay product and program restrictions for Fannie Mae and Freddie Mac.
Background: The restrictions are included in a recent amendment to the Preferred Stock Purchase Agreements between Treasury and the government-sponsored enterprises. They include a volume cap on sales through the GSE cash window and purchase restrictions on loans on second homes, on investment properties, and with certain higher-risk characteristics.
Impact: As the groups noted in their joint letter, the changes would disrupt the housing market and limit access to affordable mortgage credit, particularly for low- and moderate-income or minority borrowers.
ICBA Position: The groups urged the agencies to delay implementation of these restrictions and remove them from the PSPAs. They also called for increased transparency and a detailed analysis on how PSPA changes would affect market liquidity and LMI borrowers.