Council on Ensuring Mortgage Liquidity


Since the creation of Fannie Mae in the 1930s, the federal government has played a key role in providing stability to the secondary mortgage market. The current housing crisis has tested the government’s role and led to calls for a fundamental rethinking of how it should play its part.

To provide information and insights to this rethinking, in October 2008 the Mortgage Bankers Association (MBA) established the Council on Ensuring Mortgage Liquidity. The Council’s mission has been to look beyond the current crisis, to what a functioning secondary mortgage market should like for the long term.

02/11/11: MBA Responds to the Administration's White Paper on Government Role in the Secondary Mortgage Market

The Obama administration released its white paper outlining several concepts for reshaping the government's role in the mortgage market. Michael D. Berman, CMB, Chairman of the Mortgage Bankers Association (MBA), responded to the release noting gratification that one the concepts articulated in the white paper closely tracks MBA's proposal, released eighteen months ago, that visualizes a workable, commonsense system driven by private capital. Read Berman's response.


7/7/10: MBA Sends Letter to FHFA on Proposed Conservatorship and Receivership Framework
On Tuesday, September 7, 2010, The Mortgage Bankers Association, (MBA) sent a letter to Alfred M. Pollard, General Counsel at the Federal Housing Finance Agency (FHFA), in response to FHFA’s proposal to establish a framework for the conservatorship and receivership for Fannie Mae, Freddie Mac and the Federal Home Loan Banks (FHLBs). In the letter, MBA’s Chairman-elect Michael D. Berman, CMB and President and CEO John A. Courson outline three primary concerns with the proposal and suggest solutions to help FHFA improve its final policy. Read the letter.

7/21/10: MBA Submits Supplemental Comments to Obama Administration on the Future of the Housing Finance System
MBA augmented its previously submitted response (6/17/10) to a series of questions by the Obama Administration on the future of the housing finance system. The reason for this supplemental comment is that it has been suggested in public debate and proposals from others that some variant of the current affordable housing goals requirements for Fannie Mae and Freddie Mac needs to be maintained in a new secondary market structure. MBA believes that a return to the type of housing goals required of Fannie Mae and Freddie would be inefficient.

Read MBA's comments.

6/17/10: MBA Offers Comments to Obama Administration on the Future of the Housing Finance System
The Mortgage Bankers Association today submitted a comprehensive response to a series of questions from the Obama administration designed to elicit input on the future of the housing finance system, including Fannie Mae and Freddie Mac, and the overall role of the federal government in housing policy.

Read MBA's comments.

3/23/10: MBA’s Berman Testifies on Future of Housing Finance

On March 23, 2010, Michael D. Berman, CMB, Incoming Chairman of the Mortgage Bankers Association, testified today before the House Financial Services Committee at a hearing titled, "Housing Finance: What Should the New System Be Able to Do?"

Read the testimony.

9/2/09: Future Government Role in the Core Secondary Mortgage Market
As the policy spotlight has turned to the futures of Fannie Mae and Freddie Mac, the Council has taken on the questions of what an appropriate future government role in the core secondary mortgage market might look like. After thoughtful discussions and deliberations, we now present the Council’s Recommendations for the "Future Government Role in the Core Secondary Mortgage Market."

This report presents the Council’s suggested framework for government involvement in the single-family and multifamily secondary mortgage markets, with a particular focus on the roles currently played by Fannie Mae and Freddie Mac. While clearly not the only potential framework for the future, the Council’s recommendations represent a clear, concise and workable approach to ensuring liquidity to the mortgage market. The proposed framework carefully balances the government’s ability to ensure liquidity with the need to protect taxpayers from credit and interest rate risks associated with mortgage finance.

Read this report.

3/19/09: Principles for Ensuring Mortgage Liquidity
The Council’s second task was to develop a set of guiding principles embodying the key considerations mentioned in the primer. The report "Principles for Ensuring Mortgage Liquidity" was released by the Council on March 19, 2009. The principles serve as a tool for evaluating proposals that arise for restructuring the secondary market.

Read this report.

11/19/08: Key Considerations for the Future of the Secondary Mortgage Market and the Government Sponsored Enterprises (GSEs)
On November 19, 2008, the Council hosted a summit on the future of the secondary mortgage market and the GSEs that brought together leading thinkers from industry, academia and regulators to discuss what fundamental elements would be required for a functioning secondary market. The discussion led to the Council-issued report "Key Considerations for the Future of the Secondary Mortgage Market and the Government Sponsored Enterprises (GSEs)," which was released in January 2009.

Read this report.






MBA Resources
Date
9/2/2009 Frequently Asked Questions on the Mortgage Bankers Association’s (MBA) Mortgage Credit-Guarantor Entity Proposal
9/2/2009 Council on Ensuring Mortgage Liquidity White Paper: "Recommendations for the Future Government Role in the Core Secondary Mortgage Market"
6/3/2009 MBA Testimony, The Present Condition and Future Status of Fannie Mae and Freddie Mac
3/19/2009 Council on Ensuring Mortgage Liquidity White Paper: "Principles for Ensuring Mortgage Liquidity"
1/6/2009 Council on Ensuring Mortgage Liquidity White Paper: "Key Considerations for the Future: The Secondary Mortgage Market and the Government Sponsored Enterprises"



Future Government Role in the Core Secondary Market
On September 2, 2009, the Mortgage Bankers Association (MBA) released a new paper outlining a proposed framework for a refined government role in the secondary mortgage market designed to ensure liquidity for mortgages without presenting unnecessary risks for the taxpayer. 

Read Recommendations for the Future Government Role in the Core Secondary Mortgage Market.
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