NAR vision for the secondary mortgage market
March 05, 2021
NAR developed a vision for the secondary mortgage market that promotes a reliable and affordable source of mortgage capital for American consumers. After the financial crisis in the American housing market left Fannie Mae and Freddie Mac in financial trouble, the Federal Housing Finance Agency moved to place the GSEs into conservatorship. Today, more than a decade later, the financial crisis is long over, but the GSEs remain in conservatorship. The National Association of REALTORS®, in collaboration with Susan Wachter, the Albert Sussman Professor of Real Estate Finance at The Wharton School of the University of Pennsylvania, and R Cooperstein, head of Risk Management at Andrew Davison and Company, Inc, has developed a vision for the secondary mortgage market. The vision includes: Leveraging reforms and innovations implemented since the crisis while completing the process with instrumental updates for a fully functioning liquid market. Preserving the 30-year fixed rate mortgage and focusing on liquid secondary markets for Middle America and underserved borrowers. Protecting taxpayers by using private capital. The Future of the GSES: Readying Fannie and Freddie for the Next Chapter
