ยป
PANELISTS DISCUSS
FUTURE OF
MORTGAGE MARKET
When Ron D'Vari and Thomas Heinemann
discussed the possible winding down of
Fannie Mae and Freddie Mac at the Five
Star Conference and Expo last month, one
thing both agreed on was that reforming the
government's role in the mortgage market must
be preceded by sweeping changes in how loans
are provided and capitalized.
"GSE reform is badly needed," said D'Vari,
co-founder and CEO of NewOak Capital.
"But other issues have to come ahead of this."
Still, given the right transition and the right
preparation, D'Vari contends, "there is capital in
the market."
Heinemann, a senior legislative advisor with
HUD, says coming regulations will tighten the
market, but only time will tell how the market
adjusts. "I think we're about to enter what
could be a very interesting time on the Hill,"
Heinemann said. "What are the new rules of
the road? I think what you'll begin to see is a
gradual scaling back of government support. A
lot of things are happening that are meant to
bring back private capital."
D'Vari argues the government's role in the
housing market simply can't be maintained.
"We have created too much of an intersection
between politics and the market," D'Vari told
Five Star attendees. "We have created a big
monster for ourselves; there is no precedent for
the way the U.S. housing market works. By
every historical measure, we are off the charts."
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308,000
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the second
quarter.
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Source: Barclays Research
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