Reforms put in place during conservatorship of the GSEs are not etched in stone
A group of 29 trade associations across the real estate, lending, and home building industries has called on the Trump administration and Congress to preserve housing access and affordability by locking in recent reforms to Fannie Mae and Freddie Mac.
In an open letter, the GSE Reform Coalition said that reforms put in place during conservatorship, such as pricing parity across lenders, the transfer of risk off of taxpayer shoulders, a new infrastructure for the single-family secondary market, have better positioned Fannie Mae and Freddie Mac to continue to play a vital role in facilitating mortgage liquidity.
“But none of these reforms are etched in stone, and thus the stability of the housing market is more illusory than appearances may initially indicate,” the coalition wrote.
As policymakers look into options for GSE reforms, the coalition said any change must contain safeguards against higher costs or other market disruptions that reduce access to mortgage credit.
In addition to making current reforms, the group also called on policymakers to complete necessary additional reforms that would protect taxpayers, provide liquidity, and promote stability.
The letter was signed by Asian Real Estate Association of America, Center for Responsible Lending, Community Home Lenders Association, The Community Mortgage Lenders of America, Credit Union National Association, Enterprise Community Partners, Habitat for Humanity International, Housing Partnership Network, Independent Community Bankers of America, Leading Builders of America, Local Initiatives Support, Make Room, Manufactured Housing Institute, Mercy Housing Lakefront, Mortgage Bankers Association, National Apartment Association, National Association of Affordable Housing Lenders, National Association of Home Builders, National Association of Realtors, National Council of State Housing Agencies, National Housing Conference, National Housing Trust, National Multifamily Housing Council, Real Estate Services Providers Council, The Realty Alliance, Stewards of Affordable Housing for the Future, US Mortgage Insurers, United States Conference of Mayors, and Up for Growth Action.
