MBA Statement on FHFA Establishing Limited Capital Cushion

Rob Van Raaphorst
(202) 557- 2799

WASHINGTON, D.C. (December 21, 2017) - David H. Stevens, CMB, President and CEO of the Mortgage Bankers Association, offered the following statement regarding FHFA's decision to allow the GSEs to build a limited capital cushion.

"Director Watt has expressed significant concern regarding the lack of a capital cushion at the enterprises.   Establishing this defined $3bb buffer is a measured response and will create enough cushion for general accounting losses, aside from the impacts resulting from the latest tax legislation. This negotiated outcome is far better than the Director taking unilateral action and should put to rest calls for indefinite retention of earnings. Now that this issue is settled, it is time to focus our attention on the legislative actions being contemplated in the Senate and the House to resolve this conservatorship through congressional reform."