MBA Responds to Fed Housing Framework

by devteam January 6th, 2012 | Share

The Mortgage Bankers Associationrnreleased a response late Thursday to arnwhite paper submitted to Congress the previous day by the Federal Reserve.  The white paper, accompanied by a letters tornthe respective chairs and ranking members of the House Financial Services andrnSenate Banking committees was delivered on Wednesday by Fed Chairman Ben S.rnBeranke.  </p

The document, titled, “The U.S. Housing Market:  Current Conditionsrnand Policy Considerations.” laid out what it described as arnpotential framework for policy discussions regarding housing policy in threernareas.</p<ul class="unIndentedList"

  • Moderating therninflow of properties into the large inventory of unsold homes; </li
  • Removing some ofrnthe obstacles preventing creditworthy borrowers from accessing mortgage credit;rnand</li
  • Limiting the number of homeowners who are pushed intornan inefficient and overburdened foreclosure pipeline. </li</ul

    A detailed summary of the Federal Reserve’s policyrnoutline can be read here.</p

    David H. Stevens, President andrnCEO of MBA, issued a statement on behalf of the Association which said, inrnpart: </p

    “The Fed’s white paper is a thoughtful document that raises arnnumber of very interesting issues that policymakers ought to consider as theyrnseek to solve the ongoing ills of the housing market.  The Fed staff’srncomments validate much of what we have been saying, as it relates to thernbalance between credit availability and consumer protection, as well as thernrole that Fannie Mae and Freddie Mac could play in stabilizing and revitalizingrnthe mortgage market.  </p

    “FHFA is tasked with preserving the assets and minimizing thernnear-term losses of Fannie Mae and Freddie Mac.  However, at the samerntime, Fannie and Freddie are the dominant players in the mortgage market and wernagree with the Fed that, if allowed, could take steps that would benefit thernmarkets by helping homeowners and making affordable credit more available forrnqualified borrowers.  Among those could be initiatives that may increasernshort term losses, but have long-term benefits for the housing market.

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  • About the Author


    Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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