Canfield Press Blog

“The primary goal of any secondary mortgage market system should be to ensure that, in adverse economic environments, it can provide liquidity to the primary market in support of borrowers,” wrote Joshua Rosner with Graham Fisher. “If a proposed system results in increased government exposure, or an inability to fund itself in bad economic environments, then the proposal has failed to meet its most basic purpose and should be dismissed. Such a proposal [A More Promising Road to GSE Reform] is that put forth by Parrott, Ranieri, Sperling, Zandi and Zigas.”

R Street Institute’s Alex Pollocks suggests seven steps to reform American housing finance: (1) turn Fannie and Freddie into SIFIs at the “10% Moment”; (2) enforce the law on Fannie and Freddie’s guarantee fees; (3) encourage skin in the game from mortgage originators; (4) form a new joint FHLB mortgage subsidiary; (5) create countercyclical LTVs; (6) reconsider local mutual self-help mortgage lenders; and (7) liquidate the Fed’s MBS portfolio.

The first victim of the Panama Papers is Iceland Prime Mininster Sigmunder David Gunlaugsson, who has resigned after disclosure of his tax-avoidance arrangements.
 

Despite the challenges facing the housing market, we expect this to be the best year for housing in a decade,” wrote Freddie Mac. “Home sales, housing starts, and house prices will reach their highest level since 2006 according to our latest forecast. Low mortgage rates and an improving labor market—including modest income gains—will help drive housing markets higher. Challenges remain, with low housing supply and declining affordability being a key concern in many markets, but on balance, the housing markets in the U.S. are poised for the best year since 2006.”

“The recent evidence is that the [TRID] rule, while extremely well-intentioned, has resulted in a climate of legal uncertainty and is chilling private investment in the U.S. mortgage market,” wrote the Association of Mortgage Investors. “We urge the Bureau to open a new public comment period to address the concerns of mortgage investors. We seek formal written guidance clarifying the liability for a violation of each individual TRID requirement, as well as, the scope and applicability of TRID’s cure mechanisms.”