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Watt says he won't raise loan limits...

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Ryan Smith | 14 May 2014, 08:06 AM Agree 0
...and he's staying out of the argument on GSE reform. Both sort of expected, but what do you think? Is he right to keep out of the debate?
  • Gordon Schlicke | | 20 May 2014, 02:33 PM Agree 0
    No. His lengthly, cleverly worded, flatly read statement revealed a leader who knows how to remain just far enough from having to commit to specific reform. He was appointed because he is a political guy more than a housing/finance guy. Party leaders in congress will decide whether we see real GSE reform. It won't happen soon. The party wanted loosened credit and underwriting standards. So the newly appointed leader rhapsodizes about his concern for underserved borrowers. Nobody in Washington believes that there are people who should remain in rent. We need a strong voice and some fresh ideas for reform. What we're going to get is a never-ending comment period and paralytic decision making choked with replete verbosity. What should happen? Fannie and Freddie need to be combined. Secondary market investors should be forced into holding a piece of the action so they reform themselves. And the CFPB should be made to reduce its budget by a third. Let's start with that. Gordon Schlicke, Thirty Eight Years In The business.
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