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MBA Sets Out Plan for New Housing Finance System

Posted To: MND NewsWire

Calling the reform of the government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac “the last piece of unfinished business from the 2008 financial crisis” the Mortgage Bankers Association today presented its proposal for the future of the housing finance system . The paper, which MBA says is the product of more than a year’s work by a Task Force of individuals from MBA member companies, suggests and end-state model that ca also fulfill an affordable housing/duty to serve mission. The group sets forth a lengthy list of policy objectives which include: Maintaining the liquidity and stability of the primary and secondary mortgage markets, and keeping the bright line between them. Replacing the implied government guarantee of the GSEs with an explicit one at the mortgage-backed security…(read more)

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Source: Mortgage News Daily

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