The Mortgage Bankers Association has created a new task force to review the trade group’s approach to GSE reform and the future of the secondary mortgage market.
On Tuesday, the trade group named BB&T chairman Timothy Dale to chair a task force charged with updating the MBA’s GSE reform policies and developing a transition plan.
“The oversized government role in the residential market, and the uncertainty surrounding Fannie and Freddie, has created an unhealthy and unsustainable mortgage market,” Dale said.
“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. Our diverse task force of industry leaders will tackle these issues, with a key focus on transition,” the task force chairman said.
In 2009, the MBA developed a GSE proposal that would convert Fannie Mae and Freddie Mac into privately capitalized entities called “MCGEs” with a federal insurance backstop. The MCGEs would provide credit guarantees and enjoy a federal backstop.
But it appears this proposal has become outdated and a consensus on GSE reform still remains elusive in Washington.
The GSE regulator recently issued a proposal that would merge the Fannie and Freddie
But certain aspects of the Federal Housing Finance Agency proposal troubled several trade groups, including the MBA.
