I posted on December 22 — FHFA General Council Alfred Pollard Seeking Comments — recommending for as many people to provide comment to FHFA regarding the Housing Trust and Capital Magnet Funds by the deadline of January 15.
FHFA received 75 comments including a letter from the Independent Community Bankers of America stating:
The GSEs were placed in conservatorship by the FHFA in September of 2008,
and have been effectively under full control of the United States Government for
over six years. While both GSEs are currently solvent and have returned more
than $200 billion in revenues to the U.S. Treasury, as per the terms of their
Senior Preferred Share Agreements, neither institution is currently able to return
to private shareholder control, ownership and management. Neither institution
has sufficient equity capital to support their ongoing operations.
As the sole safety and soundness regulator for the over $4 trillion in outstanding
mortgage obligations from the GSEs, ICBA urges the Director to rescind the
decision to divert GSE revenues to fund both the HTF and CMF and to
immediately direct the GSEs to retain a minimum level of revenues to begin to
rebuild capital to support their operations. Diverting GSE revenues for purposes
other than rebuilding capital puts both GSEs at risk of failure again, which will
further constrain the housing market, and put both the U.S. economy and U.S.
taxpayers at risk.
The letter is posted here:
You can read all comments here: