|By PR Newswire||
|March 16, 2014 03:19 PM EDT||
WASHINGTON, March 16, 2014 /PRNewswire/ -- The Structured Finance Industry Group, Inc. ("SFIG"), a member-based trade industry group focused on improving and strengthening the broader structured finance and securitization market, today released the following statement regarding the housing finance reform proposal from Senate Banking, Housing and Urban Affairs Committee Chairman Tim Johnson (D-SD) and Ranking Member Mike Crapo (R-ID):
"SFIG applauds the bipartisan efforts of the Senate Banking Committee to establish a viable housing finance system that relies on a stable private mortgage market while responsibly winding down the government's role in the market," stated Richard Johns, SFIG's Executive Director. "Their efforts will maintain the momentum for housing finance reform begun by Financial Services Chairman Jeb Hensarling (R-TX) in the House, and by Senators Bob Corker (R-TN) and Mark Warner (D-VA) in the Senate, whose legislation formed the foundation for the Chairman and Ranking Member's agreement."
Mr. Johns continued, "We look forward to continuing our role as a constructive partner in the ongoing legislative discussion."
Further Background to SFIG's View on Housing Finance Reform
As discussed in its testimony before the Senate Banking Committee last September, SFIG believes it is critical that any housing finance reform provide for the following:
- Preservation and growth of the To-Be-Announced (TBA) market, which is the most efficient mechanism to enable consumers to "lock-in" interest rates on a forward basis and help minimize the cost of borrowing;
- Preservation of the 30-year fixed-rate mortgage;
- Creation of a common TBA security to foster a deep and liquid housing market;
- Implementation of a securitization platform;
- Preservation of the liquidity of legacy securities; without creating a bifurcated market; and
- A deliberate and orderly transition from the existing Government-Sponsored Enterprises.
About Structured Finance Industry Group, Inc.
Structured Finance Industry Group, Inc. ("SFIG") is a member-based, trade industry group focused on improving and strengthening the broader structured finance and securitization market. SFIG provides an inclusive network for securitization professionals to collaborate and, as industry leaders, drive necessary changes, be an advocate for the securitization community, share best practices and innovative ideas, and educate industry members through conferences and other programs. Members of SFIG represent all sectors of the securitization market including issuers, investors, financial intermediaries, law firms, accounting firms, technology firms, rating agencies, servicers, and trustees. Further information can be found at www.sfindustry.org
SOURCE The Structured Finance Industry Group, Inc.