Contact: Scott Olson For Immediate Release
571-527-2601 December 21, 2017
CHLA released the following statement in response to the joint action by Treasury Secretary Mnuchin and FHFA Director Watt to establish a $3 billion capital reserve account for both Fannie Mae and Freddie Mac:
“The Community Home Lenders Association strongly commends both Treasury Secretary Mnuchin and FHFA Director Watt for their decisive action to establish a capital reserve account for Fannie and Freddie – a step CHLA has long supported,” said Scott Olson, CHLA Executive Director.”
In fact, CHLA was the first national association to call for such an action. Two and a half years ago, in April 2015, CHLA sent the enclosed letter to the Treasury Secretary, calling for a “Capitalization Reserve Account” – similar to what Treasury and FHFA are putting in place. That April 2016 letter is enclosed.
The joint press release by Treasury also noted that a Treasury draw appears to be imminent, due to accounting changes cause by a write-down of Deferred Tax Assets of Fannie and Freddie, because of the tax bill’s reduction in the corporate tax rate.
“While CHLA supports comprehensive GSE reform, we urge Congress not to use a Treasury draw caused by accounting changes related to the tax bill as a justification to either reduce GSE access to consumer mortgage credit or to reduce the essential role Fannie and Freddie play in that process, said Scott Olson, CHLA Executive Director.”