NCRC Statement on Updates to Common Securitization Platform

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.”

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About NCRC:

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.

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Redlining and Neighborhood Health

Before the pandemic devastated minority communities, banks and government officials starved them of capital.

Lower-income and minority neighborhoods that were intentionally cut off from lending and investment decades ago today suffer not only from reduced wealth and greater poverty, but from lower life expectancy and higher prevalence of chronic diseases that are risk factors for poor outcomes from COVID-19, a new study shows.

The new study, from the National Community Reinvestment Coalition (NCRC) with researchers from the University of Wisconsin–Milwaukee Joseph J. Zilber School of Public Health and the University of Richmond’s Digital Scholarship Lab, compared 1930’s maps of government-sanctioned lending discrimination zones with current census and public health data.

Table of Content

  • Executive Summary
  • Introduction
  • Redlining, the HOLC Maps and Segregation
  • Segregation, Public Health and COVID-19
  • Methods
  • Results
  • Discussion
  • Conclusion and Policy Recommendations
  • Citations
  • Appendix

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