The Mortgage Bankers Association (MBA) outlined vital principles for the reform of Fannie Mae and Freddie Mac, emphasizing the need for an explicit backstop to retain investor confidence in GSE mortgage-backed securities and sustain market liquidity. Additionally, they advocate for a level playing field in underwriting across different lenders and clearer regulatory powers for the FHFA. Broeksmit highlighted the necessity of collaborating with Congress on tax provisions crucial to housing finance, particularly those affecting tax credits and mortgage servicing rights, as they navigate potential fiscal challenges ahead.
The MBA emphasizes the need for an explicit backstop to ensure global investors maintain confidence in GSE mortgage-backed securities, affecting market liquidity and interest rates.
A critical element outlined by Broeksmit includes establishing a level playing field in pricing and underwriting for lenders, promoting fairness across various business models.
Broeksmit advocates for the FHFA to have clear regulatory responsibilities to oversee GSE returns and market conduct, comparing it to foundational utility style authorities.
The MBA plans to collaborate with Congress on tax provisions crucial for housing finance, underscoring the urgency of maintaining support for vital housing tax credits.
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