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Posts Tagged ‘backstop’

Discarding Fannie Mae and Freddie Mac = A Nightmare

August 12th, 2013 Comments off

While the Republican-led House Financial Services Committee is supporting legislation to totally eliminate Fannie Mae and Freddie Mac from the mortgage business with no government interference , the Democrat-majority Senate Banking Committee says the government needs to be a backstop to make certain borrowers of modest means can continue to obtain financing. Even President Obama, as MHProNews reported here Aug. 7, states the mortgage industry would be better served with more private sector involvement. Meanwhile, as HousingWire reports, Fox News blogger Peter Morici and USA Today both say eliminating Fannie and Freddie would raise the cost of borrowing to a level that would be out of reach of the middle class.

(Image credit: Fotosearch)

Hearings Held on Housing Finance Reform

March 29th, 2013 Comments off

The Manufactured Housing Institute (MHI) informs MHProNews hearings were held March 19 by both the House and the Senate on housing finance reform. Texas Chairman of the House Financial Services Committee Jeb Hensarling stated he wants to abolish Freddie Mae and Freddie Mac and privatize the secondary mortgage market. Acting director of the Federal Housing Finance Agency (FHFA) Edward DeMarco testified at the House hearing the housing recovery is gaining strength, and noted the joint securitization platform that will be used by Fannie and Freddie. South Dakota Chairman of the Senate Banking Committee Tim Johnson expressed concern that privatizing the mortgage market will put homeownership out of the reach of many Americans. Two of the three witnesses at the Senate hearing say the federal government needs to provide a backstop for the GSE market in the future. MHI will continue to monitor Congressional activities to determine their impact on the manufactured and modular housing industry.

(Photo credit: Wikipedia–U. S. Capitol floor)

Private Capital, Government Insurance for Multifamily

December 5th, 2012 Comments off

In discussing the future roles of Fannie Mae and Freddie Mac in multifamily housing finance, HousingWire tells us the Mortgage Bankers Association (MBA), in a White Paper, outlined a method for government to attract large private capital. New policies need to be enacted that provide a stability and insurance backstop as the governmental role, and attract private capital as the primary source of funding for multifamily housing. Risk-based premiums would fund the program, as they are paid by those who securitize the loans. As MHProNews has learned, the White Paper asks for ensured access to liquidity in all market conditions, and says MBA will work “with a host of stakeholders and industry groups to advance policy proposals that support a vibrant and balanced housing finance system.”

(Photo credit: HousingWire)

NAHB Converges on Congress

June 7th, 2012 1 comment

The National Association of Home Builders showed up 700 strong on Capitol Hill Wed., June 6, 2012, to implore Congress to get the homebuilding industry back on track. Specifically, builders asked for the restoration of credit flow for new housing production; the reform of GSEs to ensure a federal backstop for credit; the preservation of current housing tax incentives; the relaxation of EPA’s enforcement of the lead paint rule; and the reduction of the overreach of the federal government under the Clean Water Act. NAHB Chairman Barry Rutenberg says, “In this pivotal election year, it is imperative to ensure that presidential and congressional candidates on both sides of the political aisle understand the importance of housing and homeownership.”

Photo credit: FotoSearch)