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ABA supports a bipartisan bill (S. 1835) that would create standards for a covered bond market in the United States and would establish a regulatory regime for the oversight of such a market, the association said last week in a letter to Senate Banking Committee members. Sen. Kay Hagan introduced S. 1835, and Sens. Bob Corker (R-Tenn.), Charles Schumer (D-N.Y.) and Mike Crapo (R-Idaho) are original co-sponsors.
"ABA believes that a well-regulated covered bond market would add to the multiplicity of diversified liquidity sources available in the [United States]. It would provide banks and other lenders with an additional tool to meet credit needs for residential and commercial mortgages, as well as for other loans," Floyd Stoner, ABA EVP of congressional relations, said in a letter.
ABA, which has long supported developing multiple sources of liquidity for banks, believes covered bonds can add to liquidity for both large and small institutions. While Congress has not yet decided on a specific course for resolving Fannie Mae and Freddie Mac's conservatorship, some consensus is developing around the idea that fostering the return of private capital must be an initial step in reforming the mortgage markets.
ABA's primary objective is to encourage development of a liquid secondary market supported by private capital. S. 1835 is an additional facet of such a strategy. Creating a U.S. covered bond market would augment the existing liquidity already being provided through the Federal Home Loan Banks, and Fannie Mae and Freddie Mac.
ABA remains committed to ensuring that meaningful government-sponsored enterprise reform is enacted in a reasoned, rationale time frame that doesn't disrupt the already fragile mortgage markets and doesn't harm or alter the important and dependable FLHB business model. For more information, contact ABA's ABA's Joe Pigg.
click for bill text:
http://thomas.loc.gov/cgi-bin/query/z?c112:S.1835:
S.1835
Latest Title: United States Covered Bond Act
Sponsor: Sen Hagan, Kay [NC] (introduced 11/9/2011) Cosponsors (3)
Latest Major Action: 11/9/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
COSPONSORS(3), ALPHABETICAL [followed by Cosponsors withdrawn]: (Sort: by date)Sen Corker, Bob [TN] - 11/9/2011
Sen Crapo, Mike [ID] - 11/9/2011
Sen Schumer, Charles E. [NY] - 11/9/2011
ABA supports a bipartisan bill (S. 1835) that would create standards for a covered bond market in the United States and would establish a regulatory regime for the oversight of such a market, the association said last week in a letter to Senate Banking Committee members. Sen. Kay Hagan introduced S. 1835, and Sens. Bob Corker (R-Tenn.), Charles Schumer (D-N.Y.) and Mike Crapo (R-Idaho) are original co-sponsors.
"ABA believes that a well-regulated covered bond market would add to the multiplicity of diversified liquidity sources available in the [United States]. It would provide banks and other lenders with an additional tool to meet credit needs for residential and commercial mortgages, as well as for other loans," Floyd Stoner, ABA EVP of congressional relations, said in a letter.
ABA, which has long supported developing multiple sources of liquidity for banks, believes covered bonds can add to liquidity for both large and small institutions. While Congress has not yet decided on a specific course for resolving Fannie Mae and Freddie Mac's conservatorship, some consensus is developing around the idea that fostering the return of private capital must be an initial step in reforming the mortgage markets.
ABA's primary objective is to encourage development of a liquid secondary market supported by private capital. S. 1835 is an additional facet of such a strategy. Creating a U.S. covered bond market would augment the existing liquidity already being provided through the Federal Home Loan Banks, and Fannie Mae and Freddie Mac.
ABA remains committed to ensuring that meaningful government-sponsored enterprise reform is enacted in a reasoned, rationale time frame that doesn't disrupt the already fragile mortgage markets and doesn't harm or alter the important and dependable FLHB business model. For more information, contact ABA's ABA's Joe Pigg.
click for bill text:
http://thomas.loc.gov/cgi-bin/query/z?c112:S.1835:
S.1835
Latest Title: United States Covered Bond Act
Sponsor: Sen Hagan, Kay [NC] (introduced 11/9/2011) Cosponsors (3)
Latest Major Action: 11/9/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
COSPONSORS(3), ALPHABETICAL [followed by Cosponsors withdrawn]: (Sort: by date)Sen Corker, Bob [TN] - 11/9/2011
Sen Crapo, Mike [ID] - 11/9/2011
Sen Schumer, Charles E. [NY] - 11/9/2011
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