A New Vision for Housing Finance Reform

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post About Author: Radhika Ojha Servicers Navigate the Post-Pandemic World 2 days ago February 8, 2019 1,668 Views A decade after Fannie Mae and Freddie Mac were put under the conservatorship of the Federal Housing Finance Agency (FHFA), the voices for housing finance reform are getting louder.While Sen. Mike Crapo released an outline of what housing finance reform should look like last week, the National Association of Realtors (NAR) collaborated with Susan Wachter, the Albert Sussman Professor of Real Estate Finance at The Wharton School of the University of Pennsylvania, and Richard Cooperstein, Head of Risk Management at Andrew Davidson and Company, Inc. on  new research that explores the ideal restructuring of the secondary mortgage market.The research was released as a working paper by NAR recently and proposed a “redesigned alternative based on economic principles and national objectives.” It explained why housing finance markets differ from purely competitive markets but are similar to those for public utilities, thus informing the “nature of reform needed to ensure financial stability going forward.”The working paper touched upon six key initiatives that could be implemented to realize the vision of holistic housing finance reform. They included:Leveraging reforms and innovations implemented since the crisis while completing the process with instrumental updates for a fully functioning liquid marketPromoting competition in the secondary market through proven structures to correct market failuresPreserving the 30-year fixed-rate mortgage and focusing the mission on liquid secondary markets for Middle America and underserved borrowersMinimizing the cost to consumers in normal stress periods while maximizing access for creditworthy borrowersProtecting taxpayers by using private capitalMaintaining simplicity in the transition while avoiding market disruptionsThe research revealed that the vision of a reformed housing finance market first recognized the critical role of the government-sponsored enterprises in housing finance, which was the same need that led to their initial creation. It also built on the transformed enterprises following conservatorship and codified a structure that was “effective, resilient, and fair, balancing the tension of private operating companies with the public mission.”Click here to read the full working paper. The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Related Articles Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas. Previous: Sale of $2 Million+ Homes on the Decline Next: Back From the Brink of Foreclosure Home / Daily Dose / A New Vision for Housing Finance Reformcenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago A New Vision for Housing Finance Reform Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Government, News, Secondary Market Subscribe Fannie Mae FHFA Freddie Mac Housing Finance Housing Finance Reform loans mortgage NAR Secondary Mortgage Market 2019-02-08 Radhika Ojha Tagged with: Fannie Mae FHFA Freddie Mac Housing Finance Housing Finance Reform loans mortgage NAR Secondary Mortgage Market Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago Share Savelast_img

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