MBANow: MBA’s Bill Killmer on GSE Reform Developments

The Mortgage Bankers Association released a new MBANow video featuring MBA Senior Vice President of Legislative and Political Affairs Bill Killmer, who discusses latest developments on Capitol Hill on the prospects of GSE reform.  

The video can be viewed at https://www.youtube.com/watch?v=e_LcHC0GcYc&feature=em-uploademail.    

Killmer noted recent testimony before the Senate Banking Committee by Federal Housing Finance Agency Director Mel Watt is “significant” because it suggests that legislators on Capitol Hill are serious about kick-starting the GSE reform process.  

“The two big takeaways from the hearing were that Watt and a number of senators from both sides of the aisle announced again as a core principle that whatever reform takes place should be a continuation of equal access to pricing and underwriting standards regardless of design,” Killmer said. “Frankly, that wouldn’t have happened if MBA hadn’t fought for that over the past five or six years.”   Second, Watt and lawmakers said for GSE reform to take place, Congress has to act in a unilateral way. “It has to be Congress,” Killmer said.  

As to next steps, Killmer said the Administration and Congress intend to weigh in; Treasury Secretary Steven Mnuchin told Congress that the effort should be bipartisan. “It’s critical that the White House and Treasury Department continue to make that push with Congress to make that happen,” he said.  

Senate Banking Committee Chairman Mike Crapo, R-Idaho, is likely to hold hearings in June, with MBA, which recently published Creating a Sustainable, More Vibrant Secondary Mortgage Market (https://www.mba.org/issues/gse-reform), likely to testify. He indicated that the House Financial Services Committee will likely turn its focus to GSE reform later this year, after tackling several other key issues such as flood insurance and tax reform.  

The timing of the MBA proposal is excellent,”Killmer said. “It’s a great platform for us and we are meeting with all the relevant policy makers and regulators and on Capitol Hill, were we are holding dozens of targeted meetings. It’s going to be a big point of emphasis for us at our upcoming National Advocacy Conference.”  

Other videos in the MBANow series can be viewed at the MBA YouTube channel, https://www.youtube.com/watch?v=Swk2VUJeZFI&feature=em-uploademail. The videos are also available on the MBA Insights landing page, https://www.mba.org/publications/insights/insights-publication##SubscriberID####RND##&PageID=21109.