NAR: Obama housing finance reforms ‘closely mirror’ Realtor recommendations

Realtors see government guarantee as a must for secondary mortgage market

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The housing finance reform plan outlined today by President Obama to wind down Fannie Mae and Freddie Mac includes principles that "closely mirror" an outline the National Association of Realtors presented to the White House in 2011, NAR says. NAR remains convinced of the need to preserve the government guarantee in any restructured secondary mortgage market "to ensure the continued availability of safe, reliable mortgages such as 30-and 15-year fixed-rate loans," NAR President Gary Thomas said in a statement. "In a fully privatized market, many middle class Americans and individuals on fixed incomes would be unable to access affordable credit or be forced into adjustable-rate mortgages pinned to interest rate variations after a limited term." NAR is also backing Senate legislation that preserves the Federal Housing Administration’s single- and multifamily mortgage insurance programs, which more than 40 percent of first-time buyers relied on in 2012, while giving FHA more flexi...