CARSON CITY, Nev., Jan. 18, 2018 /PRNewswire/ -- Now that a tax reform bill has been signed into law, leading mortgage bankers around Nevada are urging their Congressional Delegation to prioritize overhauling the housing finance system to ensure America has a stable and robust secondary mortgage market.
"It's time for Congress to stop avoiding housing finance reform," said Jon Gedde, Chairman of the Nevada Mortgage Lenders Association and Senior Loan Advisor at Alderus Mortgage "Fannie Mae and Freddie Mac have been ignored for far too long and their long-term future must be addressed."
During the Financial Crisis of 2008, Fannie Mae and Freddie Mac were placed under government conservatorship – or legal guardianship – because their financial conditions were deteriorating. To keep the two afloat and to prevent the U.S. housing market from collapsing, taxpayers gave them a $187 billion bailout. Fannie and Freddie's conservatorship was only intended to be a temporary solution; yet, nearly a decade later, these government-sponsored enterprises remain under the government's control.
"People, especially millennials, are moving to Nevada in increasing numbers," said Jon Gedde. "This influx is making it even more important for our lawmakers to address the housing market, so these transplants will have an easier time making Nevada their permanent home."
The Mortgage Bankers Association (MBA), the nation's leading advocate for the real estate finance industry, released a comprehensive proposal that would reform the current housing finance system. The plan aims to lessen the government's involvement in the secondary mortgage market, expand access to credit with more competition, promote affordable housing, and support underserved market segments.
"The plan laid out by the MBA is well-balanced and one that lawmakers should consider," said Jon Gedde. "It would provide Nevadans looking to enter the housing market with more options and opportunities. We are hopeful Senators Dean Heller and Catherine Cortez Masto will lead Congress to address the unstable housing finance system once and for all."
SOURCE Mortgage Bankers Association