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MAJOR BANKING, HOUSING FINANCE TRADE GROUPS URGE CONGRESS TO OPPOSE LIMITS ON FHLBANK MORTGAGE PROGRAM
WASHINGTON, D.C. — America’s Community Bankers and major banking and housing finance trade groups urged Congress today to refrain from placing a retroactive cap on the amount of Federal Home Loan Bank Mortgage Partnership program loans. The Federal Housing Finance Board removed the pilot program’s $9 billion cap, effective today. The groups’ request was directed to the leadership of the Senate Banking and Appropriations Committees and the HUD/VA Appropriations Subcommittee, which may be considering an amendment to reimpose program limits in the fiscal year 2001 appropriations bill. “The Mortgage Partnership programs are designed to increase capital available for mortgage lending and provide commercial banks and thrifts competitive alternatives in the secondary mortgage market,” the groups said. “As with any dynamic business environment, the increased competition translates into better rates and ultimately lower prices for consumers.” Restricting the program would stifle marketplace competition that ultimately benefits consumers, the groups added. In addition to ACB, also making the request were: the American Bankers Association, the American Financial Services Association, the Council of Federal Home Loan Banks, the Consumer Bankers Association, the Financial Services Roundtable, the Independent Community Bankers of America and the Mortgage Bankers Association. A copy of the letter is linked.
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