Washington, D.C. (Sept. 6, 2019)—Independent Community Bankers of America® (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on the Trump administration's proposal for reforming the housing-finance system.
“ICBA and the nation's community bankers commend the Trump administration for their efforts on housing-finance reform. Among its proposals, the administration's plan would direct Treasury and the Federal Housing Finance Agency to begin the process of recapitalizing Fannie Mae and Freddie Mac and ending the net-worth sweep of their earnings.
"These long-time community bank priorities—as detailed in ICBA’s Principles for GSE Reform white paper—are required by the Housing and Economic Recovery Act and can be accomplished administratively by the FHFA and Treasury. This action will protect taxpayers and bring more stability to the housing market.
"Community banks depend on the liquidity provided by the GSEs and competitive access to the secondary market, which permits them to meet the housing needs of their communities without having to sell their loans to Wall Street institutions that compete for their customers.
"ICBA looks forward to continuing to work with the Trump administration, the FHFA and Congress to advance housing-finance reform that preserves community bank access to the secondary mortgage market, supports the nation's housing market, and benefits local communities nationwide."
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. With more than 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ nearly 750,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5 trillion in assets, nearly $4 trillion in deposits, and more than $3.4 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.
# # #