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Posts Tagged ‘Deputy Treasury Secretary’

Housing Recovery: Sooner Rather than Later

December 19th, 2012 Comments off

While many economists and analysts think the housing recovery will plod along and finally achieve “normalcy”, some saying not until 2020, other experts predict a housing boom will hit within two to three years. As CNNMoney tells MHProNews, Barclays Capital analyst Stephen Kim states, “In our view, the housing market had undergone a dramatic over-correction during the prior five years, resulting in pent-up demand for housing purchases that would spark a rapid rise in housing starts.” He expects home prices to rise five to seven percent a year. Some think housing construction will increase by 20 percent the next two years, resulting in 1.5 million new homes a year by 2016. Rick Palacios with John Burns Real Estate Consulting, says, “If you look across the U.S. economy right now, there are only a handful of industries looking at 20-30% growth over the next 4-5 years, and housing is one of those.” The recovery may be strong enough to have a ripple effect which in turn would create more demand for housing. Quoted in the Financial Times, former Deputy Treasury Secretary Roger Altman, now chairman of Evercore Partners, noting the housing industry will add four million jobs to the market within four years, says “It will be powerful enough to lift the entire U.S. economy.”

(Photo credit: Fotosearch)

Senate Committee Sidetracked by CFPB Head Nomination

December 8th, 2011 Comments off

NationalMortgageNews reports a Senate Banking Committee hearing to discuss the work regulators are doing at six different agencies to implement Dodd-Frank became embroiled in an exchange about a seventh agency not in the room. Legislators sparred over the impending vote of Richard Cordray to head the Consumer Financial Protection Bureau (CFPB). Republicans want structural changes made to the agency, while Democrats blame Republicans for refusing to allow a vote on his nomination. Sen. Richard Shelby, (R-Ala.), asked Deputy Treasury Secretary Neal Wolin if the administration is seriously interested in discussing the issue. Wolin replied, “Well, I think, Senator, what we’re very interested in is the Senate considering Richard Cordray.” Sen. Bob Corker, (R-Tenn.), leveled a charge of political game-playing at Wolin. President Obama said, during a campaign stop in Kansas, “Everyday we go without a consumer watchdog n place is another day what a student, or a senior citizen, or member of our Armed Forces could be tricked into a loan they can’t afford—something that happens all the time.”
(Graphic credit: CFPB)

Mixed signals on Federal role, Fannie and Freddie Future uncertain

August 17th, 2011 Comments off

Deputy_Treasury_Secretary_Neal_Wolin_WSJ.pngTheHill reports a push back from the Treasury Department on an earlier Washington Post report that alleged that President Obama favored a plan retaining a major federal role in the housing finance market. Deputy Treasury Secretary Neal Wolin stated In each of the three options we outlined in our report to Congress, the governments footprint in the housing finance market will shrink substantially.” Wolin added “That’s why, in each of the options, any government support for housing finance will be targeted and limited. This will help ensure that taxpayers are protected and the private sector bears the burden for losses.” Wolin acknowledged that Fannie Mae and Freddie Mac, will play a critical role in supporting the still-fragile housing market.” Wolin claims the administration ultimately wants the government-sponsored enterprises (GSEs) wound down.

(Photo credit: Wall Street Journal)