November 18, 2014

Senators Warren, Warner Urge FHFA Action on Housing Finance Infrastructure and Access to Credit

Washington, DC - United States Senators Elizabeth Warren (D-Mass.) and Mark Warner (D-Va.) today wrote a letter to Federal Housing Finance Agency (FHFA) Director Melvin Watt urging the agency to take steps "to build a housing finance infrastructure for the future, enhance the role of private capital in the agency mortgage-backed security (MBS) market, and responsibly increase access to mortgage credit."

The senators highlighted six areas where further FHFA action can advance these goals: (1) developing a single security for Fannie Mae and Freddie Mac mortgage-backed securities; (2) creating the Common Securitization Platform (CSP) as an independent, transparent, and more efficient securitization infrastructure; (3) continuing experimentation in risk-sharing pilot programs; (4) creating specific, uniform, and public regulations for private mortgage insurers that insure loans guaranteed by Fannie and Freddie; (5) expanding and improving the First Look program; and (6) updating the credit scoring models that Fannie Mae and Freddie Mac use.

"Millions of creditworthy families are struggling to get mortgages and buy a home," said Senator Warren. "We believe FHFA can use its existing authority to extend credit to responsible families and, at the same time, prepare the housing finance system for the end of government conservatorship."

"While we work in Congress to pass comprehensive housing finance reform, we are asking FHFA to move responsibly and transparently as they lay the foundation for a system that better protects taxpayers and improves access to credit for homeowners," said Senator Warner.

A PDF copy of the full letter is available here.