A panel of notable experts in the housing and mortgage industries was cautiously optimistic and shared the viewpoint that more private capital is important to fuel the housing market recovery. The event, hosted by Radian Guaranty was called, “Homeownership: Creating Access to Mortgages, the Public-Private Balance.”
The panel discussed the current state of the mortgage market, government efforts to help distressed borrowers, key legislation affecting the housing finance industry and the importance of balance between the public and private sectors in supporting sustainable homeownership.
Panelists agreed that it’s not just about recovery in the present market, but rather about how the industry moves forward, taking into consideration what the future market looks like with private capital playing a more prominent role.
The FHA has helped provide liquidity in a challenging market, but now we’re almost 100% reliant on the government, stated David John of The Heritage Foundation. When we think about moving the market forward, we need a clear roadmap to get us there that includes more balance.
David Berenbaum of the National Community Reinvestment Coalition agreed with this sentiment.
Mark Fleming of CoreLogic said, Well, it’s really no surprise that the FHA has such a low capital reserve ratio today given the high LTV lending they have been doing. But how we solve that problem is left up to you (motioning to the audience) to decide.
Held in Washington, DC, for an audience of primarily Capitol Hill staffers, the panel was moderated by Teresa Bryce Bazemore, president of Radian Guaranty, with opening remarks provided by Radian CEO S.A. Ibrahim. Featured panelists included David Berenbaum, Chief Program Officer for the National Community Reinvestment Coalition; Mark Fleming, Chief Economist for CoreLogic; David John, Senior Research Fellow in Retirement Security and Financial Institutions for The Heritage Foundation; and Faith Schwartz, Executive Director for Hope Now Alliance.