SLOW DOWN. That’s NAR’s message to Congress. It’s bad enough to be talking about eliminating (or even reducing) the mortgage interest deduction. But when you’re looking at putting the brakes on the government-sponsored enterprises Fannie Mae and Freddie Mac without a viable alternative, you’re looking at putting the brakes on the entire housing market.
And if you add to that the idea of requiring a 20% down payment on mortgages before they can be securitized… well, you might be looking at the end of the 30-year mortgage.
Loss of the MID. Lack of a viable secondary mortgage market. Overly tight restrictions on government protections. Alone, each of those would be bad for housing. Together they could spell a return to recession — or worse.
Which brings us to NAR’s message. We’ve been fighting any changes to the MID (you know that). And now NAR president Ron Phipps is telling Congress to take the time to do GSE reform right.
“NAR strongly agrees that the existing system failed and that reforms are needed; however, redesigning a viable secondary mortgage model that will protect taxpayer dollars and serve the country’s home owners today, and in the future, can only be achieved through a methodical, measured effort,” said Phipps.
Why are GSEs so important? NAR has a primer on that very topic.
There’s certainly potential for smart, strong reform of the market. But there’s also the danger of tampering with an economy that’s still in the recovery process. So yes, you’ll be hearing a lot more from us and from NAR as we take the fight for your business to the Capitol — the one in Richmond or the one a bit further north.