Reform of the GSEs and housing finance may come, but it’s more likely to come in small bites rather than the big prix fixe Johnson-Crapo or the PATH Act.
BPC will host a discussion on reforming our nation’s housing finance system with Representatives Randy Neugebauer and John Delaney.
The testimony may place special emphasis on emerging threats that have been in the news recently, most notably cybersecurity and international concerns.
“We should refocus the discussion back on the consumer. Specifically, consumer groups, lenders and regulators should look at how to better distinguish between illiquid consumers who are short on cash but have sufficient means to pay these loans back and insolvent consumers who are headed toward bankruptcy and are unlikely to repay their loans. Moving the debate in this direction could lower costs to quality borrowers while simultaneously lowering costs to the industry. Profitable and socially responsible lending would be far more likely to occur if consumers can be accurately be categorized at a reasonable cost.”
Yesterday, Stanley Fischer was confirmed to be next Vice Chair of the Federal Reserve Board by the U.S. Senate. We think this is a good time to revisit his speech on the regulation of the financial system, delivered in August 2009.
A couple of House and Senate lawmakers provided a ray of hope on Thursday that Congress can work together to overhaul the mortgage finance system. Sen. Mark Warner (D-Va.) and Rep. Randy Neugebauer (R-Texas) suggested during a conference held by…