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Community Banks May Suffer From GSE Reforms

Community banks that rely on loans from government-sponsored enterprise to fund consumer mortgage in small towns and rural areas could be hurt by proposed GSE reforms, according to Jim MacPhee, chairman of the Independent Community Bankers of America, reports Housing Wire.

Community banks that rely on loans from government-sponsored enterprise to fund consumer mortgage in small towns and rural areas could be hurt by proposed GSE reforms, according to JimMacPhee, chairman of the Independent Community Bankers of America. MacPhee, who is also ceo of Kalamazoo County State Bank in Michigan, said the Department of the Treasury’s proposal for Fannie Mae and Freddie Mac that would reduce the role of the federal government in the housing finance market would result in transferring power to large banks that have been deemed too large to fail and ultimately could drive smaller ones out of business.

Click here to read the story from Housing Wire.

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