The President's Smart Move on Housing Reform
With the great housing reform debate underway, today the White House weighed in with President Obama’s plan for the future of housing finance in America. I, for one, was pleased that the President laid out a vision for housing finance, with key elements similar to those embraced by many stakeholders in the nation’s housing finance system. This is an issue that affects the well-being of every American, whether a homeowner or a renter, and we welcome the President’s attention and leadership.
Particularly
important is the president’s insistence on transitioning the mortgage market
toward a future state that will rely primarily on private capital, while at the
same time ensuring sufficient liquidity and the availability of the affordable
30-year fixed rate mortgage, and mortgages that finance multifamily rental
housing, in both good and bad times, through an appropriate use of a government
guarantee.
Access to credit for many qualified borrowers is still
not being attained. While reports show that there is more credit available for
borrowers, the bottom line is that credit is still very limited and not always
accessible to qualified low- to middle-class families, even those with strong
payment histories. President Obama stressed the need to simplify overlapping
regulations to help qualified families obtain a loan and touted the industry’s
work with the Administration to do so.
The White House believes, as I do, that both legislative and
non-legislative solutions are necessary in order to continue the housing
recovery as comprehensive reforms move down the road. Going forward it
will be critical that the White House and Congress work in a bi-partisan,
cooperative manner to develop and implement long-term housing finance policies
that support and protect all consumers, while at the same time promoting access
to credit for all qualified borrowers.
This was a huge step in the right direction. While I’m
pleased that many of the concepts laid out align with initiatives that I have
been talking about in this space, I’m eager to see how the plan moves forward
and work through the details.
And so, now the hard work begins. Policymakers, industry leaders and consumer
groups must work through the details for a system that will protect consumers,
stabilize and grow the housing market, and grow the economy. While working
toward near-term solutions to maintain liquidity and prepare for historical
change, we will work for comprehensive reform that encompasses every facet of
the industry – residential, commercial and multifamily – to ensure a safe,
sustainable, accessible and successful real estate finance system.Photo: Justin Sullivan/Getty Images
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