NAR Letter to House Financial Services Committee Regarding Fannie and Freddie Capital Reserves
Issue Date: June 27, 2017
On the June 27, 2017 NAR sent a letter to the Chair and Ranking Member of the House Financial Services Committee and cc’ing the Full Committee; the Senate Banking Committee; Treasury Secreatry, Steven Mnuchin and; FHFA Director, Mel Watt. The letter expresses NAR’s concerns regarding the scheduled elimination of capital reserves held by Fannie Mae and Freddie Mac (the Enterprises).
Under the terms of their agreements with the U.S. Treasury, the Enterprises’ capital reserves will decline to zero by January 1, 2018. NAR believes that, as Congress contemplates reforming the secondary mortgage market, the amount of capital reserves needed in the system will be an important question that will not only have immediate implications for taxpayers but ultimately Americans’ access to credit and homeownership.