Frank Statement on SIFMA Announcement

Washington, DC - House Financial Services Committee Chairman Barney Frank (D-MA) today released the following statement regarding an announcement by the Securities Industry and Financial Markets Association (SIFMA) to include high-cost area loans as eligible for inclusion in To-Be-Announced (TBA) mortgage-backed securities: 

            “I appreciate the action taken today by SIFMA allowing newly-originated high-cost area loans to be included in TBA mortgage pools.  This move should help to reduce the cost of mortgages to borrowers in high-cost areas without any negative effect on rates for smaller loans.  This was one of many important goals of the Housing and Economic Recovery Act of 2008.  We will continue to work with SIFMA on this going forward, but this is a very important first step and I welcome SIFMA’s actions today.”