Washington, D.C. (Sept. 15, 2021) — Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on Fannie Mae and Freddie Mac’s Preferred Stock Purchase Agreements.
“ICBA thanks the Federal Housing Finance Agency and Treasury Department for suspending ICBA-opposed provisions of Fannie Mae and Freddie Mac’s Preferred Stock Purchase Agreements.
“As advocated by ICBA, the agencies are suspending amendments affecting the government-sponsored enterprises’ acquisitions and cash window operations—which set arbitrary and inflexible limits on GSE operations.
“These disruptive measures and arbitrary volume restrictions have disproportionately hampered the ability of smaller community banks to serve low- and moderate-income and minority borrowers, undermining the economic recovery and further widening the minority homeownership gap.
“ICBA has repeatedly called on policymakers to reopen negotiations over the PSPAs and delay implementation of the restrictions—including in a joint letter with the ICBA Minority Bank Advisory Council, formal comments, and a recent joint letter with other community-based organizations.
“ICBA looks forward to continuing to work with the FHFA and Treasury as discussions over the amendments proceed.”
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. ICBA 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.
With nearly 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ more than 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5.7 trillion in assets, over $4.7 trillion in deposits, and more than $3.6 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org