WASHINGTON, D.C. – January 12, 2015 – (RealEstateRama) — David H. Stevens, CMB, President and CEO of the Mortgage Bankers Association (MBA) issued the following statement in response to the Federal Housing Finance Agency’s (FHFA) FHLBank Membership Rule released today:
“MBA is disappointed, to say the least, in the final rule on FHLBank membership. When Congress established the FHLBank membership framework, it didn’t limit membership to only certain insurance companies. Today, without direction from Congress, FHFA decided to narrow membership and exclude important members of the system.
“In particular, FHFA’s decision to disqualify captive insurance companies removes a vital component of the FHLBank membership which provides liquidity for the real estate finance market. “In today’s marketplace, we need a FHLB system that serves the wide variety of lending institutions active in today’s housing finance market, including captive insurance companies, REITs, Independent Mortgage Bankers, and other entities, all of which provide major sources of liquidity and are core components in the 21st century FHLBank system. We will continue to work with Congress on this issue to address the shortcomings of today’s rule.”
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