MBA Statement on Sen. Toomey’s Housing Finance Reform Principles

Rob Van Raaphorst
(202) 557-2799

WASHINGTON, D.C. (March 15, 2021) - Statement from Bob Broeksmit, CMB, President and CEO of the Mortgage Bankers Association, on Senate Banking, Housing, and Urban Affairs Committee Ranking Member Pat Toomey's (R-PA) set of guiding principles for housing finance reform:

"MBA welcomes the housing finance reform principles released by Senator Pat Toomey, as they demonstrate a commitment to protecting taxpayers, ensuring the ongoing affordability of the 30-year fixed-rate mortgage and promoting equitable access to the secondary market. These principles include features common to several other proposals offered by lawmakers from both sides of the political aisle committed to meaningful reforms, highlighting growing consensus on the actions that are needed. We look forward to continuing our work with Senators Sherrod Brown and Toomey, Representatives Maxine Waters and Patrick McHenry, FHFA, and the Biden administration to help enable secondary mortgage market reforms that appropriately manage risk, support affordable rental housing and homeownership, and provide a smooth transition toward a more competitive marketplace.

"Since 2008, MBA has advocated for the clear and continuing need to responsibly end the conservatorships of Fannie Mae and Freddie Mac and put in place policy measures that ensure appropriate market functioning, such as the establishment of an explicit government backstop for securities issued by Fannie Mae and Freddie Mac. We have consistently engaged in a constructive, bipartisan dialogue with congressional leaders, the executive branch, and key stakeholders seeking to advance housing finance reforms that will achieve a more vibrant, sustainable secondary mortgage market - and we will continue to do so."