INDIANAPOLIS, Aug. 22, 2017 /PRNewswire/ -- As members of the Indiana Congressional Delegation engage with constituents during August recess, mortgage bankers from across the state remind them that the Mortgage Bankers Association (MBA) plan to reform the housing system would address Indiana's urgent need for more affordable housing.
"Nearly a decade has passed since the 2008 financial crash, and we are still feeling the repercussions," said Alan Thorup, Executive Director of the Indiana Mortgage Bankers Association. "The government continues to hold Fannie Mae and Freddie Mac under conservatorship, discouraging capital and competition, which is devastating the affordable housing market in Indiana and across the country."
The Mortgage Bankers Association (MBA) earlier this year released a housing finance reform proposal, GSE Reform: Creating a Sustainable, More Vibrant Secondary Mortgage Market that aims to provide solutions for the affordable housing crisis. Under the MBA plan, the 30-year fixed mortgage rate would be preserved, ample liquidity would be provided to underserved markets, and competition would be promoted to keep borrowing costs low for consumers.
"As the current housing finance system stands, the affordable housing crisis is bound to get worse," said Thorup. "Only a legislative solution will provide the housing market with long term, sustainable reform."
Over the last decade, there has been an increase in the demand for affordable housing, yet our nation's supply has failed to keep up. This has driven costs up significantly, especially for renters who are being forced to spend a substantial portion of their income on housing.
According to a Make Room analysis of the 2015 American Community Survey (ACS) data, 25 percent of the total Indiana renter population (199,000 households) spends more than half of their income on rent. The data show that families with children are the most affected by the shortage of affordable housing followed by seniors, households with at least one disabled adult, and veteran households, respectively.
"There is rare, bipartisan support for housing finance reform among federal lawmakers," said Thorup. "When the Indiana Congressional Delegation returns to Washington from August recess in September, I hope they lead the charge by considering the MBA's plan. Hoosiers are counting on them."
SOURCE Mortgage Bankers Association