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Posts Tagged ‘mortgage reform’

Affordable Housing Blocking Mortgage Reform?

May 12th, 2014 Comments off

Writing in nationalmortgagenews.com, Brad Finklestein refutes the notion advanced by opponents that affordable housing caused the mortgage crisis. Borrowers in all income groups ran into problems, although those of more modest means got hit the hardest and likely have had a harder time recovering. But as MHProNews understands, the bottom line is that many borrowers were put into inappropriate mortgage products, as bad actors in the industry were more interested in income than doing things correctly. Unfortunately, Finklestein says affordable housing is preventing the secondary mortgage market from moving forward in Congress, while it is that very sustainable, affordable housing that is so needed. ##

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Credit Unions Testify at Senate Banking Hearing

March 6th, 2012 Comments off

The Senate Banking Committee was told by the National Association of Federal Credit Unions (NAFCU) of their opposition to mortgage reform that would eliminate the federal guarantee on mortgages through Fannie Mae and Freddie Mac and other GSEs (government-sponsored enterprises). The plan originally endorsed by the Obama administration would promote privitization of the secondary mortgage market, and the NAFCU fears the big banks who already compete with the smaller lenders for loan origination may dominate the secondary sector as well. The plan would also increase the fees Fannie and Freddie charge for mortgage guarantees, as well as eliminate the two lenders from business. NationalMortgageNews tells MHUProNews.com while the proposal does have strong Republican support, the White House and the Democrats are stepping back because of the impact resulting from a too-quick shutdown of the two GSEs, especially since they hold 90 percent of single-family mortgages.

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White House Plans for Housing Mortgage Reform

February 13th, 2011 Comments off

On Feb.  11 the Obama Administration offered a plan to reform the mortgage finance industry. It would involve shrinking Fannie Mae and Freddie Mac at 10 percent per year, requiring a down payment of at least 10 percent for Fannie and Freddie loans, and making other changes to help increase private sector borrowing. According to MHI Week In Review, other flaws in the finance housing market to be addressed include increased consumer protection, more transparency and accountability on the part of mortgage securitizers and originators, and establishing national standards for mortgage servicing. In addition, the plan calls for greater support for affordable home ownership through FHA, USDA and the Veteran’s Administration, as well as affordable rental property. A Republican member of Congress says he is encouraged by this proposal that returns the housing market to private capital.