| Title: | 03/12/07 MBA Chairman Robbins Testifies on GSE Reform, Calling for Strong Regulator |
| Source: | MBA |
| Date: | 3/12/2007 |
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WASHINGTON, DC (March 12, 2007) — John M. Robbins, CMB, Chairman of the Mortgage Bankers Association (MBA), testified today before the U.S. House of Representatives’
Financial Services Committee, Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises. Robbins testified
on legislative proposals for GSE reform.
“Fannie Mae and Freddie Mac are critically important to modern mortgage financing, and MBA supports the role the GSEs play
in maintaining and improving liquidity and stability in the secondary mortgage market” said Mr. Robbins. “MBA has long advocated
GSE regulatory reform to ensure that they are operating in a safe and sound manner, engaging only in activities that are consistent
with their charter purposes, and are subject to reasonable affordable housing goals that do not distort the market.”
“There seems to be general agreement on the fundamental tools a new regulator will need. MBA is particularly interested in
the powers of the regulator related to the review and approval of GSE activities, ongoing and new. Today, it is unclear whether
certain current GSE activities are actually permitted. The new regulator needs sufficient authority to solve this problem.”
Robbins further commented on other components of proposed GSE reform legislation.
“We appreciate that H.R. 1427 calculates the size of the contribution to the affordable housing fund on the GSEs’ portfolios
rather than on net income. MBA also believes the GSEs need the flexibility to adjust their portfolios to changing conditions
and marketplace needs.”
Robbins’ full testimony can be found at www.mortgagebankers.org.
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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry
that employs more than 370,000 people in virtually every community in the country. Headquartered in Washington, D.C., the
association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand
homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and
fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety
of publications. Its membership of over 2,400 companies includes all elements of real estate finance: mortgage companies,
mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending
field. For additional information, visit MBA's Web site: www.mortgagebankers.org.