ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release October 16, 2003 #03-48
E-mail: [email protected]

AMERICA’S COMMUNITY BANKERS STRONGLY SUPPORTS EFFORTS TO IMPROVE REGULATORY SYSTEM FOR HOUSING GSES

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WASHINGTON, D.C. — America’s Community Bankers said today that it strongly supports the efforts of the Senate Banking Committee to improve the regulatory system for the housing government sponsored enterprises.

In a statement submitted for the record, ACB said it agrees with the Treasury Department that the regulatory structure for Fannie Mae, Freddie Mac and the Federal Home Loan Bank System should be substantially improved and supports proposals to create a new independent regulator housed in the Treasury Department.

ACB said it “strongly supports” an amendment proposed by Reps. Ed Royce (R-Calif.), Carolyn Maloney (D-N.Y.) and Jim Leach (R-Iowa) that would merge the Office of Federal Housing Enterprise Oversight and the Federal Housing Finance Board into a new independent and fully funded Treasury agency.

While recognizing the Treasury Department’s concerns about the need for control of the new agency, ACB said it “differs with Treasury on this issue.” As an alternative to placing the new agency in the Treasury Department, ACB said it would “support formation of a new, independent regulator as a stand-alone agency.”

ACB said it “prefers a separate regulator” for the FHLBank System, but would support the Royce-Maloney-Leach amendment’s approach of establishing two deputy directors within a new single agency. “The new agency should administer the unique statutory arrangements that apply to the FHLBanks and Fannie Mae/Freddie Mac,” ACB said.

The new regulator should respect the genuine differences between the FHLBanks and Fannie Mae/Freddie Mac, ACB said, including “their very different capital structures.” But ACB added: “There should be no limit on its ability to adjust capital requirements for Fannie Mae and Freddie Mac if it finds that necessary.” ACB emphasized that the Finance Board currently has that authority over FHLBank capital.

ACB said it “strongly endorses the administration’s position that the new agency should have full authority to ensure that Fannie Mae and Freddie Mac are carrying out their secondary market mission.” ACB said the agency “must have the authority to review both current and future programs.” The unwillingness of the Department of Housing and Urban Development to exercise its current program approval authority, ACB said, has allowed Fannie and Freddie to engage in activities inconsistent with their charter.

Click here for the statement.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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