BOSTON, Aug. 22, 2017 /PRNewswire/ -- As the Massachusetts Congressional Delegation spends this August home for recess, mortgage experts from around the commonwealth are encouraging them to consider the Mortgage Bankers Association's (MBA) plan to reform the housing finance system, which would bring more affordable housing options to the state.
"Massachusetts is one of the most expensive states in the U.S. to live, making affordable housing options even more important," said Phil DeFronzo, President of Norcom Mortgage. "Demand for homes and rentals far outweighs supply. We must change housing policy to ensure the demand is met and affordable housing is available to all living in Massachusetts."
Earlier this year, the Mortgage Bankers Association (MBA) laid out a proposal to overhaul the current housing finance system, which is monopolized by Fannie Mae and Freddie Mac. The MBA plan would expand safe, sustainable mortgage credit and ensure healthy competition in the mortgage market to help solve the affordable housing shortage across the country. Under the plan, the MBA proposes preserving the 30-year fixed mortgage rate and encouraging competition to ensure access to affordable housing keeps up with the demand.
"The status quo of the housing industry is a catch-22," said DeFronzo. "People who cannot afford homes are being forced to rent, which is driving up the cost of rent and making it unaffordable. It's unsustainable."
According to Make Room USA's analysis of the 2015 American Community Survey (ACS), 25 percent of Massachusetts' renter population (248,000 households) spends more than half their income on rent, ranking 16th nationwide. This includes, 74,212 families with children, 54,039 senior households, 44,188 households with at least one disabled adult, and 14,124 veteran households.
"Both parties in Congress and the Trump administration have publically recognized that our current housing system is not meeting the full continuum of needs in the U.S.," said DeFronzo. "Rarely do we see this type of bipartisan agreement in Washington. Hopefully, Congress will take advantage of this rare opportunity and find a solution to our growing affordable housing crisis."
SOURCE Mortgage Bankers Association