From the archives: Fed chair nominee Powell on housing finance reform, by Stephen D. Oliner

Today, President Trump nominated Jay Powell to be the next Federal Reserve Chair. We had the honor of hosting Governor Powell at AEI this summer for an event on the need for housing finance reform.
At the event, Governor Powell stressed that reform of the housing finance system was long past due.  He focused on the need to resolve the limbo status of Fannie Mae and Freddie Mac, which have been in conservatorship since 2008, and to reduce the federal government’s dominance of the mortgage market.  Here’s a quote from his speech that sums up his message:

Today, the federal government’s role in housing finance is even greater than it was before the crisis.  The overwhelming majority of new mortgages are issued with government backing in a highly concentrated securitization market.  That leaves us with both potential taxpayer liability and systemic risk. . . . Above all, we need to move to a system that attracts ample amounts of private capital to stand between housing sector credit risk and taxpayers.  We should also use market forces to increase competition and drive innovation.

Governor Powell’s message was a welcome call to action, and I hope he continues to push these ideas as Fed Chair.

Seguir leyendo,
EN:

http://www.aei.org/publication/from-the-archives-fed-chair-nominee-powell-on-housing-finance-reform/?mkt_tok=eyJpIjoiTmpVNE5EQmtOREkxWVRCayIsInQiOiJ0YThJYUdKUFhDUWRjK0NnRzg5K3VnY29HQ3N6SUN5UjhBRFBYRHhXU0p1VU43cStcL2tyU1FZNXl0NnFURXRic1ZUK0IyZ1wvTzBUTFAxOHM5cVJxV2hPeTdwcEhTY1VXZmtkQk1xSk5RTGdhc28zXC83d3FZa2FNRkljTExtamNPRiJ9