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CHLA Welcomes Administration call to end GSEs' Conservatorship – 6/21/18

…But Renews concerns about Additional Guarantors & Small Lender Protections

Response to Release of “Delivering Government 

Solutions in the 21st Century”

Contact: Scott Olson                                                    For Immediate Release

571-527-2601                                                             June 21, 2018

Scott Olson, Executive Director of the Community Home Lenders Association (CHLA) today released the following statement in response to the Trump Administration’s release of a comprehensive document to reorganize the federal government – entitled “Delivering Government Solutions in the 21st Century” –  and specifically the section on page 75 that outlines GSE reform principles.
 
“CHLA applauds the Administration for its call to end the conservatorship of Fannie Mae and Freddie Mac and to recapitalize and re-privatize them with an explicit government guarantee.
 
However, CHLA continues to have significant concerns about adding GSE guarantors, which could facilitate vertical integration and hurt small lenders and consumers.
 
CHLA also encourages the Administration to incorporate explicit policies of G Fee parity and banning volume discounts into their GSE reform proposals as they are developed, to protect those very same small lenders and consumers.”