Smaller Lenders Support Fannie/Freddie

According to Brian Collins and Mark Fogarty, National Mortgage News, thousands of small lenders are afraid of being dominated and harmed by a few, huge, non-governmentally sponsored, mortgage-securitizing “banks” if Fannie and Freddie are driven out of existence or radically altered so that those smaller lenders wouldn’t be able to sell individual loans to Fannie and Freddie.

Collins and Fogarty write, “Under a proposal by the Bipartisan Housing Commission, only MBS issuers would have access to the securitization platform, which rankles the Independent Community Bankers of America.”

See: National Mortgage News – Smaller GSEs – What Were Hearing Article.

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