| Title: | MBA's Quinn: OFHEO Move to Reduce GSE Capital Requirements is a Crucial Step to Jumpstart the Mortgage Market |
| Source: | MBA |
| Date: | 3/19/2008 |
Contacts:
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WASHINGTON, D.C. (March 19, 2008) - Kieran P. Quinn, CMB, Chairman of the Mortgage Bankers Association (MBA) hailed today's agreement between the Office of
Federal Housing Enterprise Oversight (OFHEO) and Fannie Mae and Freddie Mac (the GSEs) allowing the GSEs to use a significant
portion of their capital surplus for purchasing mortgages and mortgage-backed securities (MBS). OFHEO estimates this will
result in an immediate injection of $200 billion into the secondary mortgage market.
Quinn issued the following statement:
"Today's action is a crucial step in the effort to jumpstart the stalled mortgage market. This immediate injection of liquidity
reestablishes the pipeline of funds flowing from secondary market mortgage purchasers to primary market lenders. This, in
turn, will enhance lenders' ability to offer financing to a wide variety of borrowers, including those looking to refinance
into a more stable and affordable loan. This should help keep some at-risk borrowers in their homes which will help stabilize
the real estate market.
"MBA is very encouraged to see that OFHEO and the GSEs have renewed their commitment to GSE oversight reform. This has long
been one of MBA's top legislative priorities and we are eager to work with OFHEO, the GSEs, Congress and the Administration
to bring it to fruition this year."
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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.