NAR says wind down Fannie and Freddie, but not like that

The National Association of Realtors supports winding down Fannie and Freddie, but is opposed to a bill that would do just that — the PATH Act — because it does not include an explicit federal guarantee to keep investment dollars flowing into the secondary mortgage market, and “dramatically restructures FHA and proposes targeting of its mission.”

“We support the winding down of Freddie Mac and Fannie Mae, and the creation of a new entity to support the secondary mortgage market. However, we believe a government guarantee is necessary to create stability in housing finance markets, and to ensure the continued availability of 30-year fixed-rate mortgages for all qualified borrowers — not just those with a high down payment and very high credit score,” the trade group said in a letter to members of the House of Representatives. “Furthermore, we believe FHA has been making significant changes to address the problems that it has experienced and does not need to be restructured in the manner proposed by the Act; instead, FHA needs the authority to undertake reforms it knows are needed to strengthen its financial footing.” Source: realtor.org.