Housing reform: 2015 be the year of GSE reform?
- After initial movement on bi-partisan legislation last year, this is a dead effort as indicated by Banking Committee member and advocate for GSE reform, Senator Bob Corker (R-TN): “Congress will ignore GSE overhaul for next 16 months.”
- Meanwhile, the housing market is moving on a number of fronts (we’ve seen this horror movie before):
v¥ Fannie Mae launched their “HomeReady Mortgage” program: You can (again) use the income from non-borrower household members.
v¥ Freddie and Fannie are working on a common Securitization Platform. Just for them (for now) but will eventually allow other participants. Question as to whether this is a transition to something new or simply securing the monopoly/duopoly of the GSE’s.
Existing Home Sales (in millions)
Existing Home Sales has increased 53.9% from its lowest level of 3.45 million in July 2010.
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Source: Deutsche Bank
Deutsche Bank Francis J. Kelly Global Public Affairs francis.j.kelly@db.com 7
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