In response to a request for policy proposals to promote economic growth, the NAREIT Mortgage REIT Council is suggesting reforms designed to expand MREITs’ support of the U.S. housing sector.
The council sent its recommendations (PDF) on April 20 to the Senate Committee on Banking, Housing and Urban Affairs following a call by Chairman Mike Crapo (R-ID) and Ranking Member Sherrod Brown (D-OH) for proposals.
The NAREIT council cited the ineligibility of MREITs to become (and, in a few cases, remain) members of the Federal Home Loan Banks (FHLBs) as one limitation on MREITs’ ability to support the housing market. Additionally, the council said interpretations of the provisions of the Investment Company Act of 1940 and certain provisions of the Internal Revenue Code of 1986 are limiting MREITs’ participation in government-sponsored enterprise credit risk transfer (CRT) securities.
(Contact: Victoria Rostow at vrostow@nareit.com)