There is no excuse for the continued massive government involvement in housing finance. As we did 10 years ago, the Federal Housing Finance Agency must work with Congress and the administration to reform the mortgage market.
With policymakers gearing up to reform the housing finance system, it is worth revisiting one of the issues that stymied negotiators in the reform effort of 2014: how to ensure adequate access to credit in the new system.
Michael Bright and Ed DeMarco’s proposal to end the conservatorship of the GSEs would use the Ginnie Mae platform to create a new secondary mortgage market.
Watt has told employees and others close to him that he plans to stay at his post after Trump becomes president to serve out a term that doesn’t end until January 2019.
If there is one feature of a reformed housing finance system that has broad buy-in, it is that private capital should take the majority of mortgage credit risk.