The Obama administration recently called for an orderly transition from the current form of the Fannie Mae and Freddie Mac secondary mortgage market to a new structure that would allow home buyers continued access to affordable, sustainable mortgages.
Without functioning mortgage markets, people cannot buy or sell homes. To ensure a smooth transition, it’s important that any new system involve some government backing, ensuring a continued flow of capital to housing markets during economic downturns. This government support provides a safety net in case private capital flees the market, as it did during the recent downturn.
Reducing government involvement in the mortgage finance market is essential to keep the market healthy, but shouldn’t be done at the expense of the economy or home buyers.
Get on the bus… In March 2011, the National Association of REALTORS® leadership team will kick off a bus tour to engage REALTORS® and consumers on key issues like this that affect home ownership.