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Posts Tagged ‘american taxpayers’

Battle Looms over Housing Finance Reform

July 30th, 2013 Comments off

As part of housing finance reform, the House Financial Service Committee passed a measure that will eventually eliminate Fannie Mae and Freddie Mac and pass the job of bundling most mortgages into marketable securities to private investors. Under the Protecting American Taxpayers and Homeowners (PATH) Act, the government would supervise the quality of securitized mortgages, and the Federal Housing Administration (FHA) would continue to back mortgages to low-income, first-time homebuyers. While critics argue the PATH Act will end the 30-year fixed-rate mortgage and drain the liquidity from the market, perhaps the private sector may be motivated to come up with its own version of the mortgage that has been so popular with consumers. Many housing interest groups—realtors, bankers, builders—would do their best to defeat it, as washingtonpost informs MHProNews. A bill in the Senate would also wind down Fannie and Freddie, but it would insure mortgage securities against catastrophic losses, providing private investors maintained some skin in the game. Although the Senate bill has not made it through committee yet, the debate is shaping up as a welcome initiative to limit the role of government in the mortgage-backed securities market.

(Image credit: CNNMoney)

Manufactured Housing Finance Needs to be in Reform Bill

July 23rd, 2013 Comments off

While the Manufactured Housing Association for Regulatory Reform (MHARR) reports the government-sponsored enterprise (GSE) finance reform bill in the House, called the Protecting American Taxpayers and Homeowners Act (PATH), is being prepared to move forward, there is no indication manufactured housing consumer financing is included. Although some industry reports say PATH “should” include manufactured home loans within the new privately-based securitization structure, it is too risky to leave it to chance. Given that it is not known when the the measure may come to the House floor, MHARR strongly recommends that mandatory manufactured housing consumer finance language is included in the bill, and that an amendment to that effect be drawn and readied for inclusion. MHARR and the Manufactured Housing Institute (MHI) are working together on this initiative, as MHProNews has learned.

(Photo credit: Liberty Homes)