Fannie Mae-No Politics (FNMA)

[navycmdr]

In its white paper, ICBA lays out its principles for GSE reform, including:

ending the GSEs’ net-worth sweep,

http://www.icba.org/docs/default-source/icba/advocacy-documents/priorities/icbaprinciplesforgsereform.pdf

-- allowing Fannie and Freddie, which have paid out nearly $80 billion more to the U.S.
Treasury than they received during the financial crisis, to rebuild their capital buffers,
providing competitive, equal and direct access to the market on a single-loan basis and the continued ability to retain and service those loans locally,

-- reducing the risks posed to the GSEs by credit-risk transfers, and
ensuring an explicit, paid-for government guarantee of GSE mortgage-backed securities and strong oversight from a single regulator.

ICBA’s white paper also outlines a way to move forward with needed administrative and legislative reforms, such as:

the Federal Housing Finance Agency ending the GSEs’ net-worth sweep,
establishing capital-restoration plans, and delaying the launch of its Uniform Mortgage Backed Security until the GSEs are recapitalized and released from conservatorship, and Congress creating a catastrophic mortgage insurance fund for GSE securities and changing the GSEs to regulated and shareholder-owned financial utilities.