To promote healthy lending, it is necessary to revive the securitization markets.  Some efforts underway have been to tighten the underwriting practices of the underlying mortgage loans; implement national mortgage lending standards and stronger oversight; increase market transparency; advocate for mandatory risk retention; and ensure the quality and integrity of credit ratings. 

 SIFMA is deeply engaged in the myriad of industry, regulatory, and legislative efforts that intersect with the securitization markets because the recovery of these markets and the restoration of healthy lending are essential to the recovery of the broader economy. Our goal is to help regulators design a regulatory regime that addresses shortfalls and gaps in previous standards, without impeding a recovery of the securitization market. 

SIFMA is also focused on overall housing finance reform in the U.S., including the future of the GSEs. Although this will be addressed separately from Dodd-Frank, it is inextricably connected to the future of the non-agency mortgage securitization markets, as well as the future of mortgage lending in the U.S. SIFMA welcomes the Administration’s interest in focusing on issues surrounding the GSEs in 2011. SIFMA believes the most important objective is to ensure a smooth and orderly transition that does not harm the still fragile housing markets or the nascent economic recovery. SIFMA urges policymakers to fix the parts of the housing finance system which need attention without dismantling the aspects of the system that have provided efficient, cost effective lending and benefits to our economy for the last 30 years.