Future of Housing Finance Will be Top Issue
for Next President
Media Contact: Sara Wiskerchen / 202-383-1013 / Email
WASHINGTON (May 16, 2012) – The future of housing finance in the
U.S. will be a key issue facing the winner of the upcoming presidential
election. That’s what a panel of industry experts told several thousand
Realtors® gathered at a symposium, Housing Policy in 2013: Challenges,
Opportunities and Solutions, during the Realtors®
Midyear Legislative Meetings & Trade Expo.
The National
Association of Realtors® supports a comprehensive reform strategy for the secondary
mortgage market to help maintain a level of certainty in the marketplace and
not further disrupt the still fragile housing market recovery.
“As leading advocates
for homeownership, Realtors® want to make sure that everyone who wants to own a
home and is able to afford one can do so,” said NAR President Moe Veissi,
broker-owner of Veissi & Associates Inc., in Miami. “Without a
secondary market, mortgage interest rates would be unnecessarily higher and
unaffordable for many Americans, and products like the 30-year fixed-rate
mortgage would likely be inaccessible for most borrowers.”
During the symposium,
Federal Housing Finance Agency Acting Director Ed DeMarco noted progress made
toward recovery, but cautioned that more remains to be done.
“We all are cautiously
optimistic that the signs of stabilization, and in some places, strength, that
have begun to emerge in various housing markets are true signals that a
long-awaited recovery is taking place,” said DeMarco. “While FHFA will keep its
focus on foreclosure alternatives, refinancing, and ongoing liquidity in the
marketplace, it is time for policymakers to begin work in earnest on the future
housing finance system.”
DeMarco outlined
several public policy goals to ensure a more effective and efficient housing
finance system, including building a new infrastructure for the secondary
mortgage market; establishing standards that promote a safer and more efficient
housing finance system; and increasing private capital while retracting
government participation in the secondary mortgage market. FHFA assumed
conservatorship of the government-sponsored enterprises Fannie Mae and Freddie
Mac in 2008, and DeMarco said the entities have played a critical role in
ensuring access to mortgage capital following the market downturn when private
lenders left the market. Since 2008 the GSEs have bought or guaranteed
approximately 75 percent of mortgages originated in the country.
DeMarco noted that
FHFA has completed more than 1 million loan modifications since 2008 and helped
millions more families avoid foreclosure through a short sale, deed-in-lieu or
other alternative. He said changes to the agency’s refinancing program has
created more opportunities for homeowners who current but underwater on their
mortgages to take advantage of low interest rates and refinance into more
affordable terms.
Also speaking at the
symposium was Federal Housing Administration Commissioner and Assistant
Secretary for Housing Carol Galante. “Future generations deserve the same home
buying opportunities as past generations,” said Galante.
Toward that end,
Galante noted that FHA helped ensure access to safe, affordable financing in
the absence of private market involvement following the economic downturn. She
said the agency is working to preserve its mission of providing liquidity while
ensuring its continued viability, and has increased premiums to compensate for
losses that resulted from increased foreclosures. Galante said the long-term
financial health of the agency looks good and that loans originated in recent
years are performing well.
Following Galante’s
speech, a panel of industry experts debated the future of the GSEs and the
government’s role in promoting the American dream of homeownership.
Moody’s Analytics Mark
Zandi identified an uncertain regulatory environment as a key issue facing the
industry. After rules like the Qualified Mortgage (QM) and the Qualified
Residential Mortgage (QRM) are defined, private participation in the market
might increase. Zandi warned however, that without a government backstop there
would be no 30-year fixed-rate mortgage, which most consumers currently use to
finance home purchases.
Wharton School of
Business Professor Susan Watcher agreed that there is tremendous uncertainty in
the market about the future of housing finance and suggested that policymakers
lack a clear vision. She said that without the right system in place, the
country could face a similar market downturn in the future.
The National
Association of Realtors®, “The Voice for Real Estate,” is America’s largest
trade association, representing 1 million members involved in all aspects of
the residential and commercial real estate industries.
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Information about NAR is available at www.realtor.org.
News releases are posted in the website’s “News and Commentary” tab. The
National Association of Realtors® supports public policies and policymakers who
support the positions of Realtors® and their clients and customers on private
property rights, housing issues and homeownership, regardless of political
party affiliation.
Horizon Properties
Inc. is Guam’s leading real estate services provider and property management company.
We work diligently to fulfill the requirements of buyers and renters,
while working towards a smooth, hassle-free transaction for sellers. Our
innovative and “customer first” approach towards property management results
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