Nine years ago this week, in the midst of the financial meltdown, regulators were forced to put Fannie Mae and Freddie Mac (the GSEs) in government conservatorship, or face the very real probability that two pillars of the housing finance system would fail. Government control of these entities was supposed to be a temporary, stop-gap solution. It was never intended to last nearly a decade. Yet here we are.
Last week, the SAFE Transitional License Act (S. 1753) was introduced in the Senate with the enthusiastic support of MBA and the mortgage industry. Similar bipartisan legislation (H.R. 2948) was introduced in late June in the U.S. House of Representatives. The SAFE Transitional License Act, could have a huge impact for the mortgage industry, as mortgage loan officers (MLOs) may soon be able to transition from a traditional bank to a nonbank and keep originating new mortgage loans without having to wait for a new license.
Earlier this year, MBA released a white paper on how best to reform the secondary mortgage market and create a stable and durable foundation for housing finance and the thirty year fixed rate mortgage that is so integral to the American dream of homeownership. Continue reading
The Federal Reserve’s Federal Open Market Committee held its July meeting on Wednesday. That’s always a good time to take a breath and look at the state of the housing market. This past meeting more so than others.