Lenders and housing advocates are not happy that proposed new rule from the Federal Housing Finance Agency alters membership requirements in the Federal Home Loan Bank system.
The Mortgage Bankers Association and a coalition sent a letter to House Financial Services Committee Chairman Jeb Hensarling, R-Texas, and Ranking Member Maxine Waters, D-Calif., expressing concern with FHFA’s proposed rule changes.
The letter was signed by MBA, Habitat for Humanity International, Independent Community Bankers of America and National Association of Real Estate Investment Trusts signed the letter, which states:
The undersigned associations, representing thousands of institutions that are dedicated to housing finance in America, are writing to express our concerns with a proposed rulemaking (the Proposed Rule) currently under consideration by the Federal Housing Finance Agency (FHFA). The Proposed Rule, which was published for notice and comment in September 2014, would make harmful changes to the Federal Home Loan Bank System’s (the System) membership requirements. It also raises significant concerns regarding legislative intent and the fulfillment of the System’s overall mission. Notably, members of both the House of Representatives and the Senate submitted letters during the notice and comment period, voicing their strong opposition to the changes proposed by FHFA.
We respectfully urge Congress to prohibit this Proposed Rule from taking effect. Congress should also direct FHFA to consult with stakeholders to evaluate an appropriate membership structure to allow the System to best serve its mission in the 21st Century.