The National Association of REALTORS® (NAR) recently issued a news release expressing support of H.R. 1859. Known as the “Housing Finance Reform Act of 2011,” this bill was introduced by Rep. John Campbell of California after our recent Midyear Meetings in Washington D.C. It establishes a new framework for the creation of “Housing Finance Guarantee Associations” which would emerge during a “wind down” of the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FNMC).
In the release NAR states that while it has “concerns with some aspects of the legislation” it appreciates other aspects such as shielding taxpayers from unnecessary risk and ensuring the availability of mortgage capital for all markets in all conditions.
This is a comprehensive legislative approach to reform that will begin a discussion and debate with others that have proposed other initiatives within the House Financial Services committee.
The goal of reform is to protect and enhance the flow of capital in the mortgage market to keep affordable mortgages available and accessible to any qualified buyer that is ready, willing, and able to purchase. This goal is paramount to a true recovery where housing is a key component to jobs and economic growth in addition to sustaining the ownership society that makes our country the land of liberty and opportunity.