SIFMA and other industry groups are urging Congress to preserve and maintain liquidity of the "to be announced" agency-securities market and find a way to deal with legacy assets of Fannie Mae and Freddie Mac. "SIFMA believes that the government must clearly state intentions with respect to legacy [government-sponsored enterprise] issues prior to and during any transition," said Kenneth Bentsen, executive vice president for public policy and advocacy at SIFMA. "Without the benefit of some form of government support for the conventional mortgage market, mortgage credit would be less available, mortgage markets more volatile, and interest rates on loans higher because fewer investors would be willing to absorb both the credit and interest rate risk." Read SIFMA's recent letter to the Treasury Department on reform of the housing-finance system.
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