The ""Mortgage Bankers Association"":http://www.mbaa.org/NewsandMedia (MBA) has assembled a GSE Single Family Task Force to revisit the association's 2009 proposal for the future of the secondary market and to further discourse on this topic.[IMAGE]
Tim Dale, EVP of mortgage lending at ""BB&T"":http://bbt.com/, will head the task force of members from various financial institutions, including ""Wells Fargo Home Mortgage"":https://www.wellsfargo.com/mortgage/, ""Chase"":https://www.chase.com/, ""U.S. Bank Home Mortgage"":https://www.usbank.com/mortgage/index.html, ""PNC Bank"":https://www.pnc.com/, ""Quicken Loans"":http://www.quickenloans.com/ and more.
""The oversized government role in the residential market, and the uncertainty surrounding Fannie Mae and Freddie Mac, have created an unhealthy and unsustainable mortgage market,"" Dale said.[COLUMN_BREAK]
""Most stakeholders agree that we need to re-engage private capital in the market, but that won't happen until the fundamental questions around the GSEs and the government role is resolved,"" Dale continued, adding that the new task force ""will tackle these issues, with a key focus on transition.""
The task force will work in two phases. First, they will review the 2009 position and determine potential issues during a transition. Next, they will put together a ""roadmap"" for the transition.
MBA's 2009 proposal supports government participation in the mortgage market, but a limited one.
""The size and scope of the U.S. housing market mean that, except in times of extreme duress, the federal government's role should be to promote liquidity for investor purchases of mortgage-backed securities, not to attempt to provide the capital for or absorb the risks itself,"" the proposal stated.
Since 2009, ""[t]he concepts contained in the MBA proposal became central to the most serious discussions over the future role of the government in housing finance,"" said Debra W. Still, chairman of the MBA.
""However, four years later, Fannie Mae and Freddie Mac are still in conservatorship, with no end in sight,"" Still continued.
The announcement of the new GSE Single Family Task Force comes on the heels of a white paper published by ""MBA's Multifamily Task Force."":https://themreport.com/articles/mba-releases-white-paper-on-gse-role-in-multifamily-housing-finance-2012-12-05