The Mortgage Bankers Association (MBA) has voiced its approval for the Federal Reserve's recently released white paper that provides a potential framework for improving the health of the housing market.
MBA President and CEO David H. Stevens, in a press statement released by his office, noted that the white paper – titled ‘The U.S. Housing Market: Current Conditions and Policy Considerations’ – mirrored many suggestions and observations previously raised by the trade association.
‘The Fed's white paper is a thoughtful document that raises a number of very interesting issues that policymakers ought to consider as they seek to solve the ongoing ills of the housing market," Stevens said. "The Fed staff's comments validate much of what we have been saying, as it relates to the balance between credit availability and consumer protection, as well as the role that Fannie Mae and Freddie Mac could play in stabilizing and revitalizing the mortgage market.Â
‘The Federal Housing Finance Agency is tasked with preserving the assets and minimizing the near-term losses of Fannie Mae and Freddie Mac,’ Stevens continued. ‘However, at the same time, Fannie and Freddie are the dominant players in the mortgage market, and we agree with the Fed that, if allowed, [they] could take steps that would benefit the markets by helping homeowners and making affordable credit more available for qualified borrowers. Among those could be initiatives that may increase short-term losses, but have long-term benefits for the housing market. We continue to urge policymakers to join us in advancing initiatives that will appropriately balance credit availability for qualified borrowers with regulation and protections for consumers that will ensure that the excesses of the past are not allowed to happen again.’Â Â Â Â Â Â Â
‘The U.S. Housing Market: Current Conditions and Policy Considerations’ is now available online at the Federal Reserve's website.