Bloomberg First Word 6/28/17 – Small Lender, Civil Rights Groups Want Fannie, Freddie Released

Small Lender, Civil Rights Groups Want Fannie, Freddie Released

By Joe Light | June 28, 2017 03:47PM ET | Bloomberg First Word

Groups representing small lenders, affordable-housing advocates and large home builders issued a white paper Wednesday calling for the Federal Housing Finance Agency to create a plan to recapitalize and release Fannie Mae and Freddie Mac from government control if certain objectives are met.

  • The paper says the FHFA should tell the mortgage-finance companies to stop sending dividends to the U.S. Treasury and rebuild their capital buffers
  • The groups say Fannie and Freddie should be prohibited from providing discounts to large lenders, should be required to serve all markets equally and should strengthen efforts to boost access to credit
  • The paper says FHFA should create a plan to release the GSEs from conservatorship after they build capital and that Congress should pass additional legislation if that is necessary to achieve the other goals
  • The companies should pay a fee for their support from the federal government, the paper says
  • Lenders should be prohibited from creating competitors to Fannie and Freddie, the one-page statement of principles said
  • The letter was signed by the Community Home Lenders Association, the Community Mortgage Lenders of America, the Leadership Conference on Civil and Human Rights, the Leading Builders of America, the National Association for the Advancement of Colored People and the National Community Reinvestment Coalition
  • The Senate Banking Committee is holding a Thursday hearing on housing-finance policy

To contact the reporter on this story:
Joe Light in Washington at jlight8@bloomberg.net

To contact the editors responsible for this story:
Jesse Westbrook at jwestbrook1@bloomberg.net
Gregory Mott

 

 

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