The new single securitization platform plan proposed by Edward DeMarco, acting director of the Federal Housing Finance Agency, was faulted by David H. Stevens, president and CEO of the Mortgage Bankers Association (MBA) as being inadequate to address the need for housing finance reform.
‘The concept of a single securitization platform that Mr. DeMarco referenced in his speech yesterday further highlights the need for a transparent, comprehensive discussion among policymakers and other stakeholders about the future of the GSEs and the government's role in the housing markets,’ said Stevens in a statement released by the MBA. ‘Piecemeal proposals without a broader framework create uncertainty and raise more questions than they answer. This latest proposal of a single platform and a new entity (owned and funded by Fannie Mae and Freddie Mac) to manage it is just one piece of a much larger puzzle that impacts borrowers, lenders and the market as a whole.’
Stevens questions the proposal's absence of details, particularly its potential impact on the beleaguered Federal Housing Administration and private investors. He also questioned DeMarco's decision to place the proposal forward without any outside input.
‘Proposals of this magnitude need a transparent process to engage with stakeholders, articulate objectives and alternatives, and demonstrate that stakeholder concerns have been evaluated and addressed,’ Stevens said.
Stevens also the faulted the White House and Congress for not taking the leadership role on the issue, noting that the MBA and other organizations have tried to step into the void with detailed plans of their own.
‘It's now time for action,’ he continued. ‘The administration, Congress and regulators need to engage with other stakeholders to move the ball forward. Until this happens, the uncertainty in the markets will persist, and a full recovery of the housing market will remain elusive.’