The problem with HR 650 is that it won't actually fix the problems with chattel lending. If you want to cure the ills of manufactured housing, then the solution is not to raise interest rates in the name of access to credit. The solution is to involve the GSEs. Fannie and Freddie create access for real property mortgages and they would do the same for manufactured housing if they were required to buy chattel loans as part of their duty-to-serve mandate.
You are here
GSE Reform: One analyst suggests that anyone investing in Fannie or Freddie right now is making two bets: one that the GSEs will remain profitable, and two that real GSE reform is not going to happen any time soon.
Senator Bob Corker has introduced a bill that would leave shareholders with nothing: "If Treasury were
Given the intention of policy makers at the Federal Housing Finance Administration, the manufactured housing industry may have to pin its hopes for recovery on the fickle interest of private investors on the secondary market.
They may have to wait.
Since 2001, the secondary market for asset-backed manufactured housing securities has been thin. The
Testimony from the Senate Banking, Housing, and Urban Affairs' hearing on how GSE reform will influence the capacity and ongoing viability of small banks:
Skillern is suggesting that the current GSE model, where a government-sponsored entity buys loans and packages them into pass-through securities, should be changed. He is suggesting a model based upon state housing finance agencies. Many of the HFA's operate without subsidy. In general, a housing finance agency system would be smaller. It would still push more ownership of mortgage-backed securities in to the domain of privately-held companies, but it would still allow for some government intervention to creating opportunity in underserved communities.
The Senate Committee for Banking, Housing and Urban Affairs is taking testimony this morning on how pulling back the role of the GSEs would impact small banks. Senator Tim Johnson (D-SD) is hearing from small bankers, credit unions and two policy advocates:
- Jack Hartings, small banker from Ohio and Treasurer of the ICBA
- Christopher Dunn, ABA member and small banker from Massachusetts
- Ted Staatz, Credit Unions
- Edward Pinto, American Enterprise Institute
- Peter Skillern, Community Reinvestment Association of North Carolina
"What you really find out is not the down payment, it is really other things: what is your debt-to-income,
The political current in Washington seems predisposed to wind down Fannie Mae and Freddie Mac. The drive is so strong that even a center-left group like the Center for American Progress has abandoned its support for some public-purpose entity. The climate is so hostile that supporting the GSEs, even in a very different and scaled-down orientation, is somewhat of a radical point of view.
The logic provided by the supporters of such a measure is that private investors will step in to buy mortgages on the secondary market. That