The National Association of Home Builders (NAHB) created a
white paper in 2012 called “A Comprehensive Framework for Housing
Finance System Reform” which recommended utilizing both public and
private sources of housing capital to keep the current federal
government housing agencies. Recently NAHB has amended the 2012 white
paper regarding the advancing of housing finance so there will be a
secure and strong national financial market, job market and economic
growth.
This is important when it comes to the housing market. Without housing finance there would be no reason for new
developments
and construction of new housing around the country. The home building
industry is dependent on the housing finance system. One of the biggest
hindrances mentioned in the white paper are the credit challenges home
builders and home buyers are still facing that stemmed from the Great
Recession.
The white paper clearly defines the importance of federal government support within the new system but limits the extent of the federal government’s duties. Conventional mortgages will be supported by private capital and a privately funded, mortgage-backed insurance fund with a federal government backstop to ensure it will be covered in case of a cataclysmic occurrence such as what happened in 2008. Now the housing finance will be more private-sector with Fannie Mae and Freddie Mac transforming into a private-sector oriented system.
NAHB has challenged Congress and federal regulators to redefine housing finance reform because every American should have a decent place to live as stated in The Housing Act of 1949.
Homeownership is one of the best financial decisions one could make and proves to be a stable investment. It provides solid jobs for Americans through home building and manufacturing products used in construction. Hopefully these steps and challenges will reduce the risk that America will be hit by another Great Recession.
Click Here for the Source of the Information.
This is important when it comes to the housing market. Without housing finance there would be no reason for new
The white paper clearly defines the importance of federal government support within the new system but limits the extent of the federal government’s duties. Conventional mortgages will be supported by private capital and a privately funded, mortgage-backed insurance fund with a federal government backstop to ensure it will be covered in case of a cataclysmic occurrence such as what happened in 2008. Now the housing finance will be more private-sector with Fannie Mae and Freddie Mac transforming into a private-sector oriented system.
NAHB has challenged Congress and federal regulators to redefine housing finance reform because every American should have a decent place to live as stated in The Housing Act of 1949.
Homeownership is one of the best financial decisions one could make and proves to be a stable investment. It provides solid jobs for Americans through home building and manufacturing products used in construction. Hopefully these steps and challenges will reduce the risk that America will be hit by another Great Recession.
Click Here for the Source of the Information.
No comments:
Post a Comment