In light of the current U.S. housing market challenges, the Community Home Lenders of America emphasizes to new FHFA Director Bill Pulte the need to prioritize affordable housing initiatives. Their letter outlines key recommendations, including maintaining the affordable housing footprint of government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac, ensuring sufficient seller-servicers, and recommending measures to cut mortgage origination costs. The organization insists that these steps are crucial to ensure both lenders' and borrowers’ interests are safeguarded while enabling GSEs to operate securely and effectively.
The Community Home Lenders of America urged the new FHFA Director to prioritize affordable housing, reduce mortgage origination costs and mitigate risks for the housing market.
We recommend that the GSEs maintain their affordable housing footprint and not impose volume caps or fee increases unrelated to risk.
Both companies should adhere to cash window requirements and avoid reducing the number of seller-servicers, ensuring broad access for lenders.
The letter also calls for replacing repurchase demands for performing loans with an indemnification fee based on the GSEs' risk management practices.
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