NAR's Vision for Housing Finance Reform

NAR has developed a new vision for the secondary mortgage market that will promote a reliable and affordable source of mortgage capital for American consumers.

After the financial crisis in the American housing market left Fannie Mae and Freddie Mac (the Government Sponsored Enterprises or GSEs) in financial trouble, the Federal Housing Finance Agency moved to place the GSEs into conservatorship. Today, more than a decade later, the financial crisis is long over, but the GSEs remain in conservatorship.

The National Association of REALTORS®, in collaboration with Susan Wachter, the Albert Sussman Professor of Real Estate Finance at The Wharton School of the University of Pennsylvania, and Richard Cooperstein, head of Risk Management at Andrew Davison and Company, Inc, has developed a new vision for the secondary mortgage market that will promote a reliable and affordable source of mortgage capital for American consumers.

The vision includes:

  • Leveraging reforms and innovations implemented since the crisis while completing the process with instrumental updates for a fully functioning liquid market.
  • Promoting competition in the secondary market through proven structures to correct market failures.
  • Preserving the 30-year fixed rate mortgage and focusing the mission on liquid secondary markets for Middle America and underserved borrowers.
  • Minimizing the cost to consumers in normal and stress periods while maximizing access for creditworthy borrowers.
  • Protecting taxpayers by using private capital.
  • Maintaining simplicity in the transition while avoiding market disruptions.

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