Did you hear? The Obama Administration just delivered a report to congress where it is outlining major reform to our housing market. What does this mean? According to Treasury Secretary Tim Geithner, they are laying out a plan for fundamental reform on a responsible timeline. The goal is to: 1. wind down the GSEs, 2. strengthen consumer protection, and 3. preserve access to affordable housing for people who need it.
In the long run I think the plan calls for some much needed reform in our markets, however those of you wanting to make moves in the housing market better do it now, as this is a sure sign of rising interest rates, Albeit probably for the better.
The Ideal is to fix the fundamental flaws in the mortgage market by shrinking the governments footprint while better targeting the government’s support for affordable homeownership and rental housing, but all in a responsible manner.
As I have said previously in my “War on Wealth” postings, less reliance on a “Big Government” will hopefully decrease the need for the government to unreasonably attack us where it hurts the most, our Pocket Books.
Sounds like a great goal. I wonder if the Special Interests can actually get behind this and help instead of constantly trying to throw a monkey wrench in the works. If we can learn to stop thinking bipartisan and actually chip in and help no matter who is in office, we just might be able to take back our lead and standing as the place to be.
The plan call for:
1. Winding down Fannie Mae and Freddie Mac and Helping Private Capital Back to the Market.
2. Fix the Fundamental Flaws in the Mortgage market.
- They will do this by phasing in increased pricing at Fannie Mae and Freddie Mac to make room for Private Capital, thereby leveling the playing field. Reducing conforming loan limits, which happens to be one of the most important strategies that have been implemented in services like smslåndirektutbetalning.se/med-betalningsanmarkning-utan-sakerhet. Phasing in 10 percent down payment requirement. Winding down Fannie Mae’s and Freddie Macs investment portfolios. Returning the Federal Housing Administration (FHA) to its traditional role.
3. Better Target the Government’s Support For Affordable Housing
- By helping consumers avoid unfair practices and make informed decisions about mortgages. Increasing accountability and transparency in the Securitization process. Creating more stable mortgage market. Servicing and foreclosure processes. and forming a new task force on coordinating and consolidating existing housing finance agencies.
4. Longer Term Reform Choices
- By reforming and strengthening the FHA. Rebalancing our housing policy and strengthening support for Affordable Rental Housing.Ensuring that Capital is available to credit-worthy borrowers in all communities, including rural areas, economically distressed regions, and low-income communities. and supporting a dedicated funding source for targeted access and affordability initiatives.
- Specifically for structuring the government’s future role in the housing market.
All in all, I think it is a good plan. I am not sure if it will pass the partisan test or not. It’s what everyone has been asking for so let’s see if everyone will help attain it. I do know that in order to put Private Money on an even playing field interest rates are going to have to go up so Private Money can compete. That means if you are going do do something in the housing market I would suggest doing it now.
For a more complete reading of the administration’s press release report here is the link CLICK HERE!
To read the Administration’s report on The Future Of Housing Finance, CLICK HERE!
Leon C. Williams
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