Publication DateJuly 2012
Author(s)Janneke Ratcliffe, Kevin A. Park
Researchers commend improvements made to the GSE goals during conservatorship and urge FHFA to maintain the existing prospective benchmarks for purchase market housing goals.
Ensuring that qualified lower-income households can access the benefits afforded other borrowers in the conforming conventional market is an integral function of the Government-Sponsored Enterprises and an important contributor to housing market health. By contrast, the financial crisis was precipitated by unregulated mortgage lending that fell largely outside the purview of the Enterprises, and much of which exploited underserved market segments.
However, when creditworthy borrowers are provided access to traditional, sustainable loan products, lending to lower -income households and communities has proven to be safe and sound.
We commend improvements made to the goals during conservatorship, and strongly encourage the Federal Housing Finance Agency to maintain the existing prospective benchmarks for Enterprise purchase market housing goals.