Chla Details Imb Priorities For A Fannie-freddie Public Offering

The Community Home Lenders of America (CHLA) began circulating an independent mortgage bank (IMB) sign-on letter on Wednesday. The document outlines key policy recommendations for a potential exit from conservatorship by Fannie Mae and Freddie Mac, which would protect IMBs and smaller lenders in particular.

CHLA is inviting all IMBs to sign on to the letter by completing a form on its website. The letter, also available on the site, is dated to be sent on Sept. 6, 2025, to Federal Housing Finance Agency (FHFA) Director Bill Pulte and Treasury Secretary Scott Bessent.

“We write as independent mortgage banks (IMBs) — non-bank mortgage loan originators — to identify essential elements of a Fannie Mae and Freddie Mac exit from conservatorship,” the letter stated. “We do so in the wake of reports that the Trump Administration plans a public offering of these two entities later this year.”

The letter lists the following five recommendations:

• Guarantee fee parity and a competitive cash window
• No Wall Street bank charters for government-sponsored enterprise (GSE) loans
• Keep Fannie and Freddie separate under a utility model
• GSEs should maintain critical mortgage products
• GSEs should purchase mortgage-backed securities to lower mortgage rates

In October 2020, CHLA led a similar IMB sign-on letter urging regulators to make the then-informal g-fee parity policy a permanent requirement. Within three months, the Trump administration formalized the policy, adding robust g-fee parity language and a cash window to the Preferred Stock Purchase Agreements (PSPAs).