ICBA Statement on Testimony from FHFA Director Mel Watt

Washington, D.C. (May 11, 2017)—Independent Community Bankers of America® (ICBA) President and CEO Camden R. Fine today issued the following statement on Federal Housing Finance Agency Director Mel Watt’s testimony before the Senate Banking Committee.

“ICBA strongly supports today’s testimony from FHFA Director Mel Watt regarding the need for Fannie Mae and Freddie Mac to retain their earnings and to start rebuilding their capital buffers. ICBA agrees that a Treasury draw by one or both government-sponsored enterprises could lead to unnecessary disruption in the market liquidity provided by the GSEs as well as other consequences that would harm community bank mortgage lenders and borrowers.

“ICBA continues urging Director Watt and Treasury Secretary Steven Mnuchin to end the Fannie and Freddie net-worth sweep and require the GSEs to develop and implement a plan to rebuild their capital, as required by the Housing and Economic Recovery Act of 2008. As stated in ICBA’s recent white paper detailing its principles and recommendations for reforming Fannie and Freddie, preserving equal access to the secondary market for lenders of all sizes will promote lending in local communities while offering an alternative to the largest and systemically riskiest financial institutions.

“ICBA looks forward to working with the FHFA, Treasury and Congress on comprehensive housing-finance reform.”

About ICBA
The Independent Community Bankers of America®, the nation’s voice for more than 5,800 community banks of all sizes and charter types, is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education and high-quality products and services. For more information, visit ICBA’s website at www.icba.org.
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