After 16 years of conservatorship, the National Housing Conference (NHC) advocates for a nonpartisan plan to reform government-sponsored enterprises (GSEs) ensuring housing finance stability. This includes preserving the Federal Housing Finance Agency's authority over guarantee fees, which aims to encourage better performance without the pitfalls of pricing mandates. The NHC stresses the urgency of restructuring GSE boards for independent governance and warns that without reform, a nationalized housing finance system may persist, exposing taxpayers to risks amidst political uncertainties affecting the massive $15 trillion mortgage market.
David Dworkin, the NHC's president and CEO, expressed the pressing need to move beyond conservatorship with a thoughtful and bipartisan plan addressing systemic flaws.
The plan aims to preserve FHFA's authority over guarantee fees, ensuring GSEs compete based on performance, which is crucial to preventing low credit standards as seen in 2008.
The NHC emphasizes restructuring GSE boards for independent governance while cautioning against the current conservatorship's susceptibility to political interference in the $15 trillion mortgage market.
Without proactive reform, we risk a permanent nationalized housing finance model, fully controlled by the government amidst a politicized backdrop, risking taxpayer interests.
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