Washington, DC – Today, in reaction to updates to the Common Securitization Platform released by the Federal Housing Finance Agency (FHFA), NCRC President and CEO John Taylor made the following statement:
“The potential that the Common Securitization Platform (CSP) will be opened up in the future to entities other than government-sponsored enterprises — Fannie Mae and Freddie Mac — raises serious questions about whether those entities will be subject to affordable housing goals and a Duty to Serve underserved markets as Fannie and Freddie currently are.”
“For this reason, NCRC opposes provisions offered by Senator Shelby that would open the CSP to issuers other than the Enterprises. We are also concerned about FHFA’s plans announced today to set up Common Securitization Solutions (CSS) with its own corporate functions next year. CSS is a joint venture currently owned by Fannie Mae and Freddie Mac and charged with developing the CSP. It moves the CSP one step closer to being a government sponsored and supported secondary market facility that operates separate from the Enterprises and without the affirmative obligations to serve traditionally underserved markets.”
“In any future system, it’s critical that any government-sponsored or supported secondary market facility operating with an explicit or implicit government guarantee be accompanied by an affirmative obligation to provide access to all creditworthy borrowers.”
“Fannie Mae and Freddie Mac, by virtue of their charter and their affordable housing goals, have served a valuable public purpose for many years, and helped many families become homeowners and enter the middle class. It’s important that this not be lost in a future housing finance system.”
NCRC and its grassroots member organizations create opportunities for people to build wealth. We work with community leaders, policymakers and financial institutions to champion fairness in banking, housing and business development.