GSEs

Privatization of Fannie & Freddie Dangerous & Reckless Without Adequate Oversight of Wall Street

Ensuring affordable housing for millions of Americans should not be sole responsibility of the government 

Washington, DC — John Taylor, President & CEO, National Community Reinvestment Coalition, made this statement today on Administration and Congressional proposals for Fannie Mae and Freddie Mac:”Privatizing Fannie Mae and Freddie Mac will exacerbate problems in the housing market, not solve them. We must recognize that for 95% of Fannie and Freddie’s history they did a great job in assisting millions of Americans to purchase a home. If they go away, I fear we’ll see two marketplaces — one for the well heeled, and a more costly system of finance for everyone else.

“If the private market will enjoy the benefit of government guarantees, then there must be a strong duty to serve the affordable housing needs of the country. Putting Wall Street in the driver seat without adequate oversight and a commitment to affordable housing would be a mistake. We still don’t have adequate funding and authority for oversight by the SEC and other agencies to ensure that they behave responsibly.

FCIC Report Puts Blame Where It Belongs: On Wall Street & Regulators

 Going Forward, Two Big Lessons Learned: Don’t Put the Fox in the Henhouse, and Regulation Matters

Washington, DC — John Taylor, President and CEO of the National Community Reinvestment Coalition, released this statement today about the Financial GSE picCrisis Inquiry Commission report and proposals to return the government-sponsored entities to the private sector without affordable housing goals:

This report puts the blame where it belongs on Wall Street and the federal regulators who looked the other way. It also puts to rest the myth that making capital available to low or moderate-income borrowers was a cause of the crisis.

While the report may be a day late and a dollar short, the lessons going forward are that regulators need the authority and the resources to stay on top of financial innovations and make sure risk taking does not become reckless. The other very important lesson is that regulation matters when it comes to protecting consumers.  There is an appropriate and necessary federal role in ensuring access to capital and markets for nontraditional borrowers, which is why the affordable housing goals must remain a part of the mission of the government-sponsored entities.

While HAMP Program Continues to Fail, Treasury Hides the Ball

Washington, DC – A new report from the Congressional Oversight Panel shows that the Administration’s leading foreclosure prevention program, the Home Affordable Modification Program (HAMP), will modify less than 5% of the loans that will go into foreclosure by program end. An estimated 8 to 13 million foreclosures will take place by 2012. The report …

While HAMP Program Continues to Fail, Treasury Hides the Ball Read More »

NCRC Urges Fed To Stimulate Economy By Demanding Principal Reductions

NCRC Urges Fed To Stimulate Economy By Demanding Principal Reductions On Its Loans Worth $1.1 Trillion Taylor Says Federal Government Has Power, Authority to Obtain Reductions on Majority of Mortgage Market Washington, DC – In its efforts to stimulate the economy, the Federal Reserve should demand that banks reduce the principal balances on $1.1 trillion …

NCRC Urges Fed To Stimulate Economy By Demanding Principal Reductions Read More »

Improving HMDA Data can be the Answer to Averting another Foreclosure Epidemic

delinquent bill picWashington, DC–On Friday, September 24th, NCRC will testify before Federal Reserve Board on making critical improvements to HMDA data, so that lenders can be held accountable for the types of loans they are issuing to communities.

“We are in an era of some of the most complicated mortgage products to-date and given the strain that bad mortgage loans have put on our economy, lenders should be examined with a microscope now more than ever. In the era of reckless and corrupt lending, it is crucial that HMDA actually does what it was enacted to do, which is identify discriminatory lending patterns and determine if financial institutions are meeting local housing needs,” said John Taylor, president and CEO of NCRC, in reaction to the Federal Reserve’s 2009 HMDA data report.

The recently enacted Dodd-Frank bill mandates significant improvements to HMDA data. NCRC calls upon the Federal Reserve Board and the new Consumer Financial Protection Bureau to expeditiously implement these improvements. In today’s release, the Federal Reserve Board states that the current HMDA data lacks information on credit scores, property values, and other factors necessary to fully account for disparities in racial access to affordable loans.