CARSON CITY, Nev., Dec. 19, 2017 /PRNewswire/ -- As tax reform negotiations come to an end and a bill is finalized, Congress must shift toward reforming the nation's unsustainable housing finance system, according to mortgage bankers across Nevada who say housing finance reform is the last piece of unfinished business from the 2008 financial crisis.
"The need for housing finance reform grows more urgent with each passing day," said Jon Gedde, Chairman of the Nevada Mortgage Lenders Association and Senior Mortgage Advisor at Alderus Mortgage. "Congress and the Administration pledged to tackle Fannie Mae and Freddie Mac, and as tax reform wraps up in Washington, it is time for Congress to shift its focus."
Fannie Mae and Freddie Mac were placed under government conservatorship – or legal guardianship – during the financial crisis in 2008. Nearly ten years later, these government-sponsored enterprises remain under the government's control, monopolizing the mortgage system and creating an unsustainable market.
"With housing prices and demand on the rise, Nevada's real estate market might seem strong, but unfortunately, it faces significant challenges," Gedde continued. "Construction has been slow, inventories are drying up, and the median home price is up dramatically meaning low and middle-income individuals are being priced out of the market. It's unsustainable, and Congress must act to implement a policy that ensures a sound real estate market where middle-income Americans have the opportunity to buy a home."
The Mortgage Bankers Association (MBA), the nation's leading advocate for the real estate finance industry, has laid out a proposal to overhaul the current housing finance system. The plan aims to expand access to credit, promote affordable housing, and support underserved market segments.
"Few issues garner bipartisan support in Washington, D.C. – but the need for a more stable and competitive housing finance system has support from both Democrats and Republicans," said Gedde. "That is why they must seize this opportunity with the goal of creating a long-term stable housing system."
SOURCE Mortgage Bankers Association