Although the Obama Administration has supported a reduced role for the government in supporting the housing market, it still backs 90 percent of newly issued mortgages - "more than ever before." A new report examines the prospect of a withdrawal.
As Floyd Norris reports, the prospect for a federal government withdrawal from the mortgage market is facing long odds.
“'For the foreseeable future, there is simply not enough capacity on the balance sheets of U.S. banks to allow a reliance on depository institutions as the sole source of liquidity for the mortgage market,' stated a report on the American housing market this week, issued by a group that was filled with members of the housing establishment."
“Given the size of the market and capital constraints on lenders, the secondary market for mortgage-backed securities must continue to play a critical role in providing mortgage liquidity,” added the report, issued by a housing commission formed by the Bipartisan Policy Center, a group that was begun by former Senate majority leaders from both parties. The group thinks investors will not be willing to finance enough mortgages — particularly 30-year fixed-rate loans — without a government guarantee."
"In the end," concludes Norris, "we can have a government-dominated mortgage system, with the risks inherent in that — risks that we saw in the need to bail out Fannie and Freddie. Or we can abandon the 30-year fixed-rate mortgage, leaving homeowners at risk when rates rise, as they are in much of the world. But it is hard to see how we can have it both ways."
FULL STORY: Easing U.S., Slowly, Out of Home Financing
Can Obama Cure America's Housing Headache?
A series of seemingly intractable obstacles stand in the way of transforming the housing and mortgage markets to reduce government involvement. Peter Eavis asks if a second term president is exactly the force needed to overcome such obstacles.
Freddie Mac, Fannie Mae to Back $1 Million Mortgages
Expensive housing markets are about to cross a symbolic threshold.
The 30-Year Mortgage Faces an Unprecedented Threat: Climate Change
The climate crisis will present more of an existential crisis to the traditional U.S. mortgage market than any previous financial crisis, according to some of the experts cited in the article.
Analysis: Cybertruck Fatality Rate Far Exceeds That of Ford Pinto
The Tesla Cybertruck was recalled seven times last year.
National Parks Layoffs Will Cause Communities to Lose Billions
Thousands of essential park workers were laid off this week, just before the busy spring break season.
Retro-silient?: America’s First “Eco-burb,” The Woodlands Turns 50
A master-planned community north of Houston offers lessons on green infrastructure and resilient design, but falls short of its founder’s lofty affordability and walkability goals.
Test News Post 1
This is a summary
Analysis: Cybertruck Fatality Rate Far Exceeds That of Ford Pinto
The Tesla Cybertruck was recalled seven times last year.
Test News Headline 46
Test for the image on the front page.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
EMC Planning Group, Inc.
Planetizen
Planetizen
Mpact (formerly Rail~Volution)
Great Falls Development Authority, Inc.
HUDs Office of Policy Development and Research
NYU Wagner Graduate School of Public Service