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Major players issue housing finance reform statement

By: VHFA on 3/28/2011

This morning, the National Council of State Housing Agencies (NCSHA), National Association of Home Builders, National Association of Realtors, Mortgage Bankers Association, and others, released a set of "Principles for Restoring Stability to the Nation’s Housing Finance System."

The principles state:

  • A stable housing sector is necessary for economic recovery and long-term prosperity
  • Private capital should be the dominant source of mortgage credit and bear the primary risk in any future housing finance reform system
  • A continuing and predictable government role is necessary to ensure liquidity and stability for homeownership and rental housing
  • Changes to the mortgage finance system must be done carefully and over a reasonable transition period

The statement also says, “Government support through various insurance and guarantee mechanisms is especially important to facilitate long-term fixed-rate mortgages, affordable financing for low- and moderate-income borrowers, and financing rental housing in all parts of the country including rural areas.”

The groups that developed and signed the statement will distribute it to key congressional and administration offices today.

Other groups that signed include American Bankers Association, Housing Policy Council of the Financial Services Roundtable, Independent Community Bankers of America, Manufactured Housing Institute, Mortgage Insurance Companies of America, National Apartment Association, National Multi Housing Council, and the Securities Industry and Financial Markets Association.

The statement is significant because it reflects an industry consensus on the importance of a strong government role and a commitment to government support for affordable financing for homeownership and rental housing in all parts of the country.