The National Association of Home Builders called on Congress Tuesday to move forward on bipartisan housing finance reform to ensure that affordable housing credit will be delivered through a competitive and stable system that maintains a federal backstop for the market.
NAHB's proposed framework for housing finance reform focuses on transitioning Fannie Mae and Freddie Mac to a new securitization system for conventional mortgages backed by private capital and privately funded mortgage-backed securities.
"Multiple stakeholders have now weighed in with their proposed approaches to this important task. While the details of those approaches may differ, one thing they all have in common is the need to maintain some form of federal support to the conventional mortgage market," said Rick Judson, chairman of NAHB.
He added, "That’s the point from which we believe Congress should start as it charts a path for the eventual wind-down of Fannie Mae and Freddie Mac."