Small Lenders Raise Concerns on GSE Reform

Small lenders expressed their concerns about potential GSE reform during a Senate Banking Committee hearing on Thursday, July 20th, as reported by American Banker. In the past, Fannie Mae and Freddie Mac have offered bulk discounts to large originators, a practice currently prohibited by the Federal Housing Finance Agency, and which small lenders fear may be revived as a result of GSE reform.

"It definitely put us at a competitive disadvantage," said Jack E. Hopkins, President and CEO of the $770 million-asset CorTrust Bank. The American Banker article states that "small lenders are particularly worried about big banks' ability to either own a guarantor or purchase a stake in one," and this concern resonated with legislators on both sides of the aisle.

Sign Up for Our Newsletter

Subscribe

News
Connect with SFIG
LinkedIn logo
Join us on LinkedIn >
Twitter logo
Follow us on Twitter >


Quick Search

Advanced Search
wagers
Terms and Conditions | Privacy Policy