Nearly a decade after the housing market's collapse triggered the Great Recession, members of both sides of the political aisle are calling for reform. Principles of Housing Finance Reform lays out a roadmap for reforms for a new housing finance system to achieve liquidity, access, and sustainability.

Housing finance reform : protecting small lender access to the secondary mortgage market : hearing before the Committee on Banking, Housing, and Urban Affairs, United States Senate, One Hundred Thirteenth Congress, first session, on examining components such as infrastructure, technology, and the cash window, that need to be preserved for small lenders in a new housing finance system, Novemb

This book examines the Administration's plan to reform America's housing finance market to better serve families and function more safely in a world that has changed dramatically since its original pillars were put in place nearly eighty years ago. Americans should have choices in housing that make sense for them and for their families. This means rental options near good schools and good jobs, as well as access to credit for those Americans who want to own their own home, which has helped millions of middle class families build wealth and achieve the American Dream. Going forward, the government's primary role should be limited to robust oversight and consumer protection, targeted assistance for low-and moderate-income homeowners and renters, and carefully designed support for market stability and crisis response.

The election of Donald Trump alongside libertarian majorities in the House and Senate is likely to jumpstart housing finance reform efforts, and it appears almost certain that the federal government's role in housing finance will be significantly reduced. A number of legal and economic analyses have looked at the effects that housing finance reform may have on the availability of mortgage funding for American households. However, these commentaries have to date overlooked the implications that such reform presents for the global money supply. This Article shows that:(1) housing finance has historically played an important role in money creation; (2) Fannie and Freddie today are a major producer of government-backed “safe assets;” and (3) these safe assets are at the heart of money creation in the shadow banking system today, which is an important part of the overall money supply. Accordingly, this Article argues that housing finance reform as it is currently being contemplated is likely to have negative near-term and long-term implications for financial stability and monetary policy. Policy makers should carefully consider these effects of major changes to the housing finance system on the money supply before committing to any course of action.

Why America's public-private mortgage giants threaten the world economy—and what to do about it The financial collapse of Fannie Mae and Freddie Mac in 2008 led to one of the most sweeping government interventions in private financial markets in history. The bailout has already cost American taxpayers close to $150 billion, and substantially more will be needed. The U.S. economy--and by extension, the global financial system--has a lot riding on Fannie and Freddie. They cannot fail, yet that is precisely what these mortgage giants are guaranteed to do. How can we limit the damage to our economy, and avoid making the same mistakes in the future? Guaranteed to Fail explains how poorly designed government guarantees for Fannie Mae and Freddie Mac led to the debacle of mortgage finance in the United States, weighs different reform proposals, and provides sensible, practical recommendations. Despite repeated calls for tougher action, Washington has expanded the scope of its guarantees to Fannie and Freddie, fueling more and more housing and mortgages all across the economy--and putting all of us at risk. This book unravels the dizzyingly immense, highly interconnected businesses of Fannie and Freddie. It proposes a unique model of reform that emphasizes public-private partnership, one that can serve as a blueprint for better organizing and managing government-sponsored enterprises like Fannie Mae and Freddie Mac. In doing so, Guaranteed to Fail strikes a cautionary note about excessive government intervention in markets.