SIFMA Outlines Guiding Principles for GSE Reform at HFSC Hearing

Washington, DC, October 25, 2017 –  Today, Kevin Chavers, managing director at BlackRock, testified on behalf of SIFMA before the House Financial Services Committee Subcommittee on Housing and Insurance at a hearing entitled “Sustainable Housing Finance: Private Sector Perspectives on Housing Finance Reform.”

The testimony notes the industry’s belief that it is timely for Congress to move forward with meaningful reforms that protect taxpayers, ensure access to affordable housing, and maintain deep and liquid markets, including the preservation of a highly liquid To-Be-Announced Market (TBA).  It further notes that, over the past nine years, there have been significant changes in the housing and securitization markets, as well as critical changes to Fannie Mae and Freddie Mac.

SIFMA believes Congress should consider some key principles when developing any housing finance reform legislation. At a high level, these guiding principles are: (i) the need for a clearly defined and limited government role to facilitate liquidity, yet protect taxpayers, (ii) transparency at all levels, and (iii) a framework to attract private capital. A sustainable proposal needs to be comprehensive in considering the roles and structures of Fannie Mae, Freddie Mac, the Federal Housing Administration (FHA), and Ginnie Mae, as well as their regulatory regimes. 


SIFMA is the voice of the U.S. securities industry. We represent the broker-dealers, banks and asset managers whose nearly 1 million employees provide access to the capital markets, raising over $2.5 trillion for businesses and municipalities in the U.S., serving clients with over $18.5 trillion in assets and managing more than $67 trillion in assets for individual and institutional clients including mutual funds and retirement plans. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit