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 April 27, 2001 #01-36
E-mail: [email protected]

ACB, STATE GROUPS SUPPORT OBJECTIVES OF BAKER BILL

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WASHINGTON, D.C. — America’s Community Bankers and eight state trade groups have pledged to support the objectives of the bill introduced by Rep. Richard Baker (R-La.) to provide effective regulation of Fannie Mae and Freddie Mac.

“We strongly support your objectives to assure adequate safety and soundness regulation of Fannie Mae and Freddie Mac and to define more sharply their missions and the programs and services they may offer to carry out that mission,” the groups said in a letter to Baker. “We pledge to you that we will work with members of our state delegations to try to convince them of the importance of H.R. 1409.”

The groups acknowledged that Fannie and Freddie have made the mortgage delivery process more efficient, benefiting millions of Americans, but that they can underprice private sector mortgage lenders because of government advantages. The two GSEs enjoy: exemption from state income taxes and Securities and Exchange Commission regulation, the perception that their debt is federally backed, and capital requirements that are much lower than those of well-capitalized banks and thrifts.

“Only Congress can establish the proper balance in public policy by sharply defining the agencies’ mission and authorizing a credible regulator to enforce it,” the groups said. “We believe the regulator should be required to consider the impact of efficient private sector competitors as one factor in approving products and services,” they added.

“It is still our members, thrifts and community banks, that deliver the important benefits of homeownership to consumers.”

Signing the letter were: ACB, the Heartland Community Bankers Association, Community Bankers of Louisiana, the Maine Association of Community Banks, the Michigan League of Community Banks, Community Bankers Association of New York State, the Ohio League of Financial Institutions, the Texas Savings and Community Bankers Association and the Western League of Savings Institutions.

ACB’s letter is attached.

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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