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» REPORT: SECONDARY MARKET KEY TO PROMOTING HOUSING AFFORDABILITY The key to a viable, accessible mortgage market lays in the structure of the secondary market, according to opinions expressed by the Center for American Progress (CAP), a policy think tank, and the National Council of La Raza (NCLR), a Hispanic advocacy group. In a report titled "Making the Mortgage Market Work for America's Families," the two groups propose ways the secondary market can accomplish the goals of accessibility and affordability. "Lenders prefer to make the types of mortgage loans that the secondary market will buy," the groups stated in their report. "For this reason, one of the most effective ways to ensure a broad, accessible, and affordable primary mortgage market is by creating a secondary market that promotes these same principles," the report continued. CAP and NCLR suggest it is the duty of the secondary market to encourage fair lending and broaden homeownership opportunities to underserved populations. The groups assert the inevitability of government support for the housing market. As such, "taxpayers deserve a market that serves the longterm interests of families and the economy as a whole," the groups said. Recognizing the widespread goal of promoting private capital in the mortgage market, the groups express concern that without the housing goals enforced by the GSEs, market innovation "may not evolve organically." To fill the gap left by the GSEs in this regard, the groups suggest creating a Market Access Fund. The Market Access Fund would finance "the development and testing of innovative, affordable products and services for approximately 1 million to 2 million households annually," the report stated. The groups also advocate for an industry regulator in their report. The regulator would identify market gaps and evaluate all secondary market entities. Participants in the secondary market would be required to submit strategic plans in which they designate specific market priorities they intend to address. "As we proceed with our national conversation about how to reform the secondary market, we will spend much time discussing questions of structure, including the appropriate role of private capital, how to minimize risk to taxpayers, and the future of the 30-year fixed-rate mortgage," the report concludes. "But we must also address questions of access and affordability." VISIT US ONLINE @ DSNEWS.COM SURVEY UNCOVERS SIMILAR VIEWS ON HOMEOWNERSHIP AMONG LARGEST ETHNIC GROUPS When it comes to homeownership, the three largest ethnic groups in the nation share similar visions and attitudes, according to a survey from Better Homes and Gardens Real Estate. The survey included three groups—Caucasians, African-Americans, and Hispanics—with 400 respondents represented for each group. Most individuals from all three groups view homeownership as a lifelong goal and consider it to be the greatest indicator of status. For 78 percent of African-Americans and Hispanics, homeownership was viewed as the greatest indicator of status, while 65 percent of Caucasians shared this view. Each of the groups also view homeownership as a wise investment that is also long-term. In fact, 52 percent of Hispanics who do not own said they are focused on saving for a down payment. The same was said among 46 percent of African-Americans and 44 percent of Caucasians. When asked about location, the majority of respondents from each group showed a preference for suburbs, with 59 percent of AfricanAmericans in this category, 55 percent of Caucasians, and 50 percent of Hispanic Americans. Living close to the area in which one grew up was found to be more important for Hispanics and African-Americans, with more than half from each group expressing a preference to stay within the same state they were raised. For 56 percent of Caucasians, the preference was just to stay within the same broad region of the country. Also, one in three Hispanics said their ideal home is located within the town they grew up in, while only 20 percent of Caucasians had the same preference. All groups expressed optimism concerning the next generation of homeowners, with most believing their children or future children will own a home before they did. Of the groups, Hispanics and African-Americans were the most optimistic, with 78 percent and 74 percent, respectively, believing the next generation will own before they did. In addition, 90 percent of Hispanics believe their children's homes will be the same size or bigger than their home, while 83 percent of African-Americans said the same. Seventy-three percent of Caucasians shared the expectation. The majority of African-Americans (59 percent) and Hispanics (63 percent) also anticipate having their parents, grandparents, or other family members living with them at some point, which means owning a home to accommodate such an arrangement is important. Meanwhile, 43 percent of Caucasians say it is likely that their relatives will be moving in with them. "America has a proud heritage of diversity, and the notion that our client base will continue to change and evolve should be apparent to everyone in the real estate industry," said Sherry Chris, president and CEO of Better Homes and Gardens Real Estate. "It's important that we understand all that we can about our consumers to best serve them and that includes understanding them not only from a cultural standpoint, but with regard for their individual values, aspirations, and needs." VERBOSITY "This bipartisan bill will . . . have enormous implications for our recovering housing market. [T]he nation's Hispanic real estate leaders estimate that it would create a new pool of 3 million homeowners and pump more than $500 billion in sales, income, and spending into the U.S. housing economy. I am the son of an immigrant and I understand the struggles that many of these families and individuals are going through. This vote was the right thing to do." —HUD Secretary Shaun Donovan in response to the Senate's passage of the Immigration Reform bill 23

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