CHLA Lauds FHFA Director Watt’s testimony on GSE Capital Buffer, Reforms Undertaken to Date
Contact: Scott Olson For Immediate Release
571-527-2601 May 11, 2017
Scott Olson, Executive Director of the Community Home Lenders Association (CHLA) today issued the following statement in response to FHFA Director Watt’s testimony before the Senate Banking Committee on GSE issues:
“CHLA commends Director Watt’s continued leadership in warning of the risks of the Sweep Agreement on the GSEs’ declining buffer and potential Treasury advance – as well as the need to take action to address the negative consequences of such an outcome.
Director Watt made it clear in his oral comments that FHFA has the authority to act on its own to prevent this, and CHLA continues its urgent call to take such action soon.
CHLA also appreciates Director Watt’s clarification, in his written testimony, that significant reforms have already been taken to date with regard to the GSEs, and that suspending dividends to build a modest capital buffer does not equate to so-called ‘recap and release.’”