ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release October 26, 2005 #05-79
E-mail: [email protected]

ACB STATEMENT ON HOUSE PASSAGE OF GSE LEGISLATION

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Statement by F. Weller Meyer, chairman, America’s Community Bankers, on passage today by the House of legislation to strengthen the regulation of the housing government sponsored enterprises:

America’s Community Bankers commends the House for adopting a bill that addresses the essential requirements of reforming oversight of Fannie Mae, Freddie Mac and the Federal Home Loan Bank System, and moves the process forward. We especially applaud the leadership of House Financial Services Committee Chairman Michael Oxley (R-Ohio) and Rep. Richard Baker (R-La.), chairman of the Capital Markets Subcommittee.

ACB also appreciates the effort by Rep. Scott Garrett (R-N.J.) to remove the bill’s unfortunate increase in the conforming loan limits in high cost areas. We will continue to work with Congress so that the final legislation does not include this unwarranted provision. Permitting Fannie and Freddie to buy larger loans would divert attention from their mission of serving low- and moderate-income homebuyers and would be of negligible benefit to higher-income families already served by mortgage lenders and an active secondary market.

We are pleased that the H.R. 1461 contains several priorities strongly advocated by ACB. These include: establishing effective regulation for Fannie Mae and Freddie Mac; recognizing and preserving the cooperative nature of the Federal Home Loan Bank System; allowing the regulator to establish a clearer distinction between primary and secondary mortgage markets and to approve new programs and activities; and explicitly allowing Fannie and Freddie to continue to offer automated underwriting systems.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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