MBA Call to Action Urges Support of GSE Reform
The Mortgage Bankers Association’s grassroots advocacy arm, the Mortgage Action Alliance, issued a Call to Action on Friday, urging its members to contact their representatives and senators to support efforts to reform the secondary mortgage market.
Last week, MBA issued a new white paper, GSE Reform: Creating a Sustainable, More Vibrant, Secondary Mortgage Market (https://www.mba.org/issues/gse-reform), which provides a detailed picture of a reformed and revitalized secondary mortgage market.
The paper outlines how MBA’s approach to GSE Reform will inject much higher levels of risk-bearing private capital into the mortgage system, while dramatically reducing the system’s reliance on government support. This will enhance the stability of the mortgage system with multiple Guarantors that will be regulated like privately owned utilities, balancing the interests of consumers, lenders and shareholders. Taxpayers and consumers will be protected by a clear set of market conduct rules, prudential requirements, and a new federally backed Mortgage Insurance Fund (standing behind the mortgage-backed securities, not the Guarantors themselves), financed with appropriately priced insurance premiums.
Importantly, the proposal would ensure that mortgage lenders of all sizes and business models have equal access to the secondary market, enhancing competition and options for borrowers. Having multiple Guarantors competing on operations and systems development, customer service, product parameters and innovation, pricing and execution will also ultimately benefit borrowers.
MBA launched a media campaign in support of the white paper; MBA President and Chief Executive Officer Dave Stevens, CMB, appeared on CNBC’s Squawk Box to preview MBA’s proposal and discuss the importance of comprehensive GSE reform (http://video.cnbc.com/gallery/?video=3000611662).
MAA asked its members to get the word out and educate elected officials on this important issue.
“This is our opportunity to shape laws affecting our businesses before impactful legislation like this is drafted,” said MBA Senior Vice President of Legislative and Political Affairs Bill Killmer. “To that end, we are asking you to contact your elected officials and urge them to read MBA’s white paper and take action by contacting the appropriate members of House and Senate leadership.”
For more information or to take action, click http://action.mba.org/mba/app/write-a-letter?0&engagementId=337633. Membership in the Mortgage Action Alliance is free; for more information, click http://apps.mba.org/Advocacy/MortgageActionAlliance/MAASignup.htm.
