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Volume 14 - Number 15

July 25, 2014

Industry Groups Dismayed With IG Report on Nonbank Risk to GSEs

Industry trade groups are lining up to express their dismay at a recent audit issued by the Inspector General of the Federal Housing Finance Agency, which said both good and bad things about the risk nonbanks and small lenders pose to Fannie Mae and Freddie Mac. The latest trade group missive was issued late this week by the Community Home Lenders Association: “By implication, the IG report seems to be pushing for more loans to be done at the big TBTF [too big to fail] banks by stating that small nonbank lenders are riskier for the enterprises and with little or no evidence to support the claim.”

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