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Dave Stevens Flip Flops

Yesterday, Investors Unite reported on an appearance by Dave Stevens on CNBC in which he noted the lack of capital reserves at Fannie and Freddie and the huge role that these companies still play in housing finance, despite their current state of limbo. 

Here’s a link to the CNBC clip.

David Stevens - Squawk Box

Investors Unite has been talking about capital for some time now.  Earlier this month, Tim Pagliara submitted a piece to the Hill.com which pointed out that the Third Amendment Sweep had undercapitalized Fannie and Freddie and put the taxpayer at risk. 

That’s why we are so enthusiastic to see Dave Stevens joining the chorus of voices who are expressing concerns about Fannie and Freddie being undercapitalized and locked in conservatorship, especially given that more than 60 percent of mortgages in this country are still secured by these two companies. 

But, after we posted our story, we received this email from a Vice President at the Mortgage Bankers Association, where Dave Stevens serves as President. 

Date: Tue, Mar 24, 2015 at 4:50 PM
Subject: Your Blog Post on David Stevens’ CNBC Appearance
To: “[email protected]” <[email protected]>

Investors Unite:

Today’s blog post takes Dave Stevens’ remarks on CNBC out of context and twists them to make it appear that he supports your agenda to recapitalize the GSEs and allow them to once again distort the mortgage marketplace.  You know full well that Mr. Stevens does not share your view, and to portray him as some sort of convert or supporter of your cause is cynical and dishonest.  We would respectfully request that you amend your blog post to reflect the fact that Mr. Stevens does not support your agenda, or better yet, delete the post altogether.

I look forward to your response.  

Perhaps the Mortgage Bankers Association didn’t watch the CNBC segment of Dave Stevens talking about capital.  If not, we encourage them to do so.

Ultimately, Dave Stevens has the right to backtrack or revise his comments.  But why would he?  Stevens is the President of the Mortgage Bankers Association.  Why wouldn’t he be for re-capitalizing Fannie and Freddie as a way to safeguard affordable housing for all Americans?  Fannie and Freddie are securing 60% of the mortgages in this country; wouldn’t Dave Stevens’ own members support more mortgage availability in this country?  If he’s not representing them, who is he representing?