Mortgage Bankers Tell Congress: Fix Housing Finance
The Indiana Mortgage Bankers Association ended its annual State Convention this afternoon with a roundtable discussion, where local mortgage lenders discussed the growing need for housing finance reform and what actions Congress must take to create a mortgage market that meets the full range of housing needs in Indiana, and across the U.S.
Mortgage bankers explain
“Housing finance reform is long overdue,” said Alan Thorup, executive director of the Indiana Mortgage Bankers Association. “The government’s current duopoly is putting a huge strain on the amount of credit available in the secondary mortgage market, which is contributing to the shortage of housing, skyrocketing home prices, and increased difficulty finding affordable homes and rentals. Congress is the only body that can fix the current finance system, and they need to act before it is too late.”
Why now?
The current structure of the housing finance system consists of two mortgage giants, Fannie Mae and Freddie Mac, that are under government conservatorship. This was a direct result of the 2008 financial crash and remains one of the last government patches still in place.
“Housing finance reform remains the last piece of unfinished business from the 2008 financial crash,” said Dave Miller, President of the Indiana Mortgage Bankers Association. “It is widely agreed upon that a stronger, more robust housing finance system is needed, but no actions have been taken. Indiana homebuyers and renters are counting on Congressional leaders to move forward with meaningful reform that would guarantee stability and access to credit, strengthen the affordable housing market, and promote competition.”
Recently, the Mortgage Bankers Association released a proposal, GSE Reform: Creating a Sustainable, More Vibrant Secondary Mortgage Market, recommending a reformed secondary mortgage market. The MBA plan aims to keep the 30-year fixed mortgage rate, protect taxpayers from another government bailout, and ensure enough credit to address all the housing needs across the country.
“The housing market in Indiana is red hot, making it more important than ever for Congress to ensure a reliable housing finance system for decades to come,” said Bryan Traylor, Board of Directors Indiana Mortgage Bankers Association. “The Mortgage Bankers Association has already laid out a detailed proposal that Congress should use as a blueprint. The proposal aims to protect taxpayers, enhance stability in the market, and provide underserved communities with ample access to credit.”
For questions about the roundtable or to set up interviews, contact Kate Shepherd Communications.