MBA Introduces GSE Reform Principles and Guardrails

Mortgage Bankers Association Press Release

“Today’s paper is intended to provide thoughtful recommendations on how to reform the GSEs while ensuring a healthy, robust secondary mortgage market emerges for both single-family and multifamily mortgages,” said Rodrigo Lopez CMB, Executive Chairman of NorthMarq Capital and Chairman of MBA. “The U.S. mortgage market requires global capital in order to maintain adequate liquidity through all economic cycles.  International and institutional investors will only fill that role if there is an explicit government guarantee on the securities, something that can only be obtained by congressional action.”

The MBA will elaborate on all of these concepts in its full paper, anticipated in April, and will also include more detailed end-state reform recommendations including a comprehensive transition plan and affordable housing strategy.

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