Non-Agency Lending: How to Attract Private Funding to a Riskier Market
The
House Financial Services Committee conducted hearings on Wednesday on
Government Barriers to the Housing Market Recovery, hearing from speakers
representing three government agencies and four representatives from the private
and quasi-private sector.
David
Stevens, Assistant Secretary for Housing and Commission of the Federal Housing
Administration (FHA) told the committee that the Obama administration feels it
is essential to facilitate the return of private capital to the mortgage
markets as the government scales back its current historically oversized
footprint. Stevens outlined the progress
that FHA has made in restoring its capital reserves, improving loan quality,
and reducing its exposure to risk but said Congress needs to pass comprehensive
FHA reform legislation that enhances FHA’s lender enforcement capabilities and
risk management efforts.
Several others shared their perspective on attracting private investors back to the non-agency mortgage market…..
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