Secondary mortgage market reform: We have a bill

Just released from NAR: “Realtors® Support Bill for Comprehensive Reform of Secondary Mortgage Market.”

The long-term viability of America’s housing finance market requires comprehensive reform of the secondary mortgage market. Toward that end, the National Association of Realtors® supports H.R. 2413, the “Secondary Market Facility for Residential Mortgage Act of 2011.”

What does the bill — introduced yesterday by Reps. Gary Miller (R-Calif.) and Carolyn McCarthy (D-N.Y.) — do to Fannie and Freddie? Pretty much what we’ve been saying all along needs to be done: Keeps the secondary market private, but gives the federal government the role (in the form of an as-yet-unnamed entity) of ensuring that capital remains available even when times get tough.

"[H]aving only private capital as the sole source of housing finance could severely restrict mortgage capital and result in a system that is dominated by a few large banks that are “too-big-to-fail” at the expense of consumers.

This new government entity (think of it as the successor to Fannie and Freddie) would not have shareholders, and its sole purpose would be "to facilitate the flow of mortgage capital and provide liquidity during all market conditions."

Obviously we’ll keep you updated on the bill, how you can help, and what specifics emerge.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
This entry was posted in The Buzz. Bookmark the permalink.

2 Responses to Secondary mortgage market reform: We have a bill

  1. Carl M. W. Grenn Sr. says:

    I called Rep Miller’s office yesterday for a copy of H.R. 2413. If you have a copy would you please E mail me one. Thank you.CMWG Sr.
    I respect Rep Miller after having seen him in Action in the Financial Committee on C Span. But I am troubled about the policy to replace F and F. Treasury, Fed., and the Conservator at FHFA, have put a knife in the back of F and F, to make them fail. in order to transfer F and F’s business to Wall Street. This is a grave mistake. The Financial Crisis proved Wall Street is incapable of putting integrity into the National Mortgage Market. Greed rules the Street but it should never rule the National Mortgage Market that was established by F and F.
    Where is the National Mortgage market today? It is still with F and F. Yesterday on C Span, it was stated that 95 % of mortgage activity is with F and F ( and don’t forget GNMA’s MBS activity, which I helped start in 1969) The GSE’s are the only real game in town for REALTORS and Builders. Frantic efforts today are being expended by REALTORS, and builders to keep the present Mortgage Ceilings in place at F and F. I have put forth that effort myself.
    What reward does F and F get- to be replaced by Wall Street. That is bad policy and REALTORS and Builders should be ashamed of themselves for going along with the Treasury’s and Federal Reserve program.
    Does F and F need changing, YES. To eliminate all the abuses that have happened to them. FNMA has never caused the Taxpayers a dime. That is true today but no one seems to care. Press releases taunt $151Billion cost to taxpayers. This is not true. CMWG Sr.

  2. (One copy of H.R. 2413 is on its way to you.)

Leave a Reply

Your email address will not be published. Required fields are marked *