ICBA Statement on Permitting Greater MBS Purchases by Federal Home Loan Banks, Fannie Mae, Freddie Mac

Camden R. Fine, president and CEO of the Independent Community Bankers of America (ICBA), issued the following statement on the Federal Housing Finance Board’s decision to permit the Federal Home Loan Banks to increase the level of mortgage security purchases:

“ICBA commends the action of the Federal Housing Finance Board and its decision to permit greater mortgage-backed security (MBS) purchases by the Federal Home Loan Banks. This decision, together with similar action by the Office of Federal Housing Enterprise Oversight (OFHEO) allowing greater mortgage and MBS purchases by Fannie Mae and Freddie Mac, is a major step in restoring homebuyer confidence and extending greater liquidity in the mortgage markets.”

“The government sponsored enterprises were created by Congress to help American homeowners address market imbalances and to ensure that credit flows to communities across the country. ICBA is pleased to see they are playing an important role in addressing the current mortgage market problems.”

About ICBA
The Independent Community Bankers of America, the nation’s voice for community banks, represents nearly 5,000 community banks of all sizes and charter types throughout the United States and is dedicated exclusively to representing the interests of the community banking industry and the communities and customers we serve. For more information, visit www.icba.org.