Home Builders Call on Congress to Move Forward on Housing Finance Reform

  Home Builders Call on Congress to Move Forward on Housing Finance Reform

Business Wire

WASHINGTON -- March 26, 2013

The nation’s home builders today called on Congress to move forward on
bipartisan housing finance reform to ensure that affordable housing credit can
be delivered through a competitive, efficient, sound and stable system that
maintains the crucial element of a federal backstop for the mortgage market.

Citing recent white papers produced by the Bipartisan Policy Center Housing
Commission, National Association of Home Builders (NAHB), Mortgage Bankers
Association and others, NAHB Chairman Rick Judson said, “Multiple stakeholders
have now weighed in with their proposed approaches to this important task.
While the details of those approaches may differ, one thing they all have in
common is the need to maintain some form of federal support to the
conventional mortgage market. That’s the point from which we believe Congress
should start as it charts a path for the eventual wind-down of Fannie Mae and
Freddie Mac.”

NAHB’s proposed framework for housing finance system reform envisions
transitioning Fannie Mae and Freddie Mac to a new securitization system for
conventional mortgages backed by private capital and a privately funded
federal mortgage-backed securities fund. Such a plan would need to be phased
in over a period of time, with Fannie Mae and Freddie Mac remaining
operational until the alternative system is fully functioning.

“As the housing market recovers and begins to add crucial strength and jobs to
the national economy, it is essential that Congress ensure a stable and
affordable flow of credit for home mortgages and housing construction,” said
Judson. “We encourage lawmakers to pursue the path that NAHB has recommended.
Most importantly, a federal backstop should be a fundamental element of
bipartisan legislation moving forward.”

ABOUT NAHB: The National Association of Home Builders is a Washington-based
trade association representing more than 140,000 members involved in home
building, remodeling, multifamily construction, property management,
subcontracting, design, housing finance, building product manufacturing and
other aspects of residential and light commercial construction. NAHB is
affiliated with 800 state and local home builders associations around the
country. NAHB's builder members will construct about 80 percent of the new
housing units projected for this year.

Follow us on Twitter @NAHBMedia.

Contact:

National Association of Home Builders
Paul Lopez, 202-266-8409
plopez@nahb.org
www.nahb.org
 
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