[PDF] Principles Of Housing Finance Reform eBook

Author : Susan M. Wachter
Publisher : University of Pennsylvania Press
Page : 289 pages
File Size : 45,97 MB
Release : 2016-08-10
Category : Business & Economics
ISBN : 0812293738

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In the fall of 2008, the world watched in horror as the U.S. housing finance system shattered, triggering a global financial panic and ultimately the Great Recession. Now, nearly a decade later, the long and slow housing recovery has reached a critical moment. Though the housing finance system has stabilized, it remains in the hands of the federal government, leaving taxpayers exposed to the credit risk while private funding remains mostly on the sidelines. Principles of Housing Finance Reform identifies the changes necessary to modernize the housing finance system, identifying guiding principles that should underlie a rebuilt system. Contributors to the volume set out a wealth of innovative solutions that are possible within this framework, presenting proposals for long-term structural reforms that would infuse new life into the U.S. housing finance system while enhancing long-term stability. Nearly a decade after the inception of the Great Recession, reform proposals have arisen across the political spectrum. This is a moment of opportunity for rebuilding a key sector of the U.S. economy. The research in this volume represents the best thinking of policy researchers and economic experts on the challenges that lie ahead and provides a roadmap for reforms to create a system characterized by liquidity, stability, access, and sustainability. Contributors: W. Scott Frame, Meghan Grant, John Griffith, Diana Hancock, Stephanie Heller, Akash Kanojia, Patricia C. Mosser, Kevin A. Park, Wayne Passmore, Roberto G. Quercia, David Scharfstein, Phillip Swagel, Joseph Tracy, Susan M. Wachter, Dale A. Whitman, Mark A. Willis, Joshua Wright.

Author : United States. Congress
Publisher : Createspace Independent Publishing Platform
Page : 96 pages
File Size : 45,15 MB
Release : 2017-09-27
Category :
ISBN : 9781977699978

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Housing finance reform : protecting small lender access to the secondary mortgage market : hearing before the Committee on Banking, Housing, and Urban Affairs, United States Senate, One Hundred Thirteenth Congress, first session, on examining components such as infrastructure, technology, and the cash window, that need to be preserved for small lenders in a new housing finance system, Novemb

Author : Benjamin W. Virtanen
Publisher :
Page : 0 pages
File Size : 17,88 MB
Release : 2011
Category : Housing
ISBN : 9781613243503

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This book examines the Administration's plan to reform America's housing finance market to better serve families and function more safely in a world that has changed dramatically since its original pillars were put in place nearly eighty years ago. Americans should have choices in housing that make sense for them and for their families. This means rental options near good schools and good jobs, as well as access to credit for those Americans who want to own their own home, which has helped millions of middle class families build wealth and achieve the American Dream. Going forward, the government's primary role should be limited to robust oversight and consumer protection, targeted assistance for low-and moderate-income homeowners and renters, and carefully designed support for market stability and crisis response.

Author : David Min
Publisher :
Page : 40 pages
File Size : 24,51 MB
Release : 2018
Category :
ISBN :

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The election of Donald Trump alongside libertarian majorities in the House and Senate is likely to jumpstart housing finance reform efforts, and it appears almost certain that the federal government's role in housing finance will be significantly reduced. A number of legal and economic analyses have looked at the effects that housing finance reform may have on the availability of mortgage funding for American households. However, these commentaries have to date overlooked the implications that such reform presents for the global money supply. This Article shows that:(1) housing finance has historically played an important role in money creation; (2) Fannie and Freddie today are a major producer of government-backed “safe assets;” and (3) these safe assets are at the heart of money creation in the shadow banking system today, which is an important part of the overall money supply. Accordingly, this Article argues that housing finance reform as it is currently being contemplated is likely to have negative near-term and long-term implications for financial stability and monetary policy. Policy makers should carefully consider these effects of major changes to the housing finance system on the money supply before committing to any course of action.

Author : Adam J. Levitin
Publisher : Harvard University Press
Page : 401 pages
File Size : 13,86 MB
Release : 2020-06-09
Category : Business & Economics
ISBN : 0674979656

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The definitive account of the housing bubble that caused the Great Recession—and earned Wall Street fantastic profits. The American housing bubble of the 2000s caused the worst global financial crisis since the Great Depression. In this definitive account, Adam Levitin and Susan Wachter pinpoint its source: the shift in mortgage financing from securitization by Fannie Mae and Freddie Mac to “private-label securitization” by Wall Street banks. This change set off a race to the bottom in mortgage underwriting standards, as banks competed in laxity to gain market share. The Great American Housing Bubble tells the story of the transformation of mortgage lending from a dysfunctional, local affair, featuring short-term, interest-only “bullet” loans, to a robust, national market based around the thirty-year fixed-rate mortgage, a uniquely American innovation that served as the foundation for the middle class. Levitin and Wachter show how Fannie and Freddie’s market power kept risk in check until 2003, when mortgage financing shifted sharply to private-label securitization, as lenders looked for a way to sustain lending volume following an unprecedented refinancing wave. Private-label securitization brought a return of bullet loans, which had lower initial payments—enabling borrowers to borrow more—but much greater back-loaded risks. These loans produced a vast oversupply of underpriced mortgage finance that drove up home prices unsustainably. When the bubble burst, it set off a destructive downward spiral of home prices and foreclosures. Levitin and Wachter propose a rebuild of the housing finance system that ensures the widespread availability of the thirty-year fixed-rate mortgage, while preventing underwriting competition and shifting risk away from the public to private investors.

Author : Peter King
Publisher : Routledge
Page : 212 pages
File Size : 11,39 MB
Release : 2015-11-19
Category : Business & Economics
ISBN : 1317380800

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The Principles of Housing is an engaging and discursive introduction to the key topics within housing studies. Whereas many books get bogged down in country-specific policy or small innovations, this book argues that the fundamental concepts of what we call housing are relatively stable and unchangeable. By focusing on universal principles, the book provides an introduction to housing that can be used by students world-wide. The book consists of a series of short chapters relating to the key issues of housing, such as borrowing, choice, finance, government, need, reform and welfare. Each chapter is designed to be a starting point for a wider conversation, with discussion questions and a number of think pieces and international case studies to help students connect these general principles to their own surroundings. Written by renowned housing expert Peter King, The Principles of Housing succeeds in being accessible and engaging without shying away from the complexities of housing issues. The book will be invaluable to students on housing-related courses across finance, real estate, planning, development, politics and sociology subjects. The book would also be useful to housing professionals and policy makers aiming to expand their understanding of housing issues.