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36 Understandably, housing finance issues received far less attention, if any, than other issues on the tops of minds of voters this past November. However, housing remains a key driver of domestic economic vitality and a focus on housing as a national priority remains crucial. According to the Federal Reserve Second Quarter 2016 Flow of Funds report, the total value of the U.S. housing market is $23.5 trillion, comprised of $10.1 trillion in mortgage debt and $13.40 trillion in household equity. Although the numbers are massive, the fact is that the housing finance system has remained in near "crisis mode" for far too long. e broader economy is in modest recovery and the housing market is on firmer footing compared to the period surrounding the presidential transition of 2008; however, many significant challenges still face the mortgage market and the delivery of housing (product). e desire to become a homeowner has not waned, but policies enacted over the past few years have made that dream unreachable for many. In spite of historically low mortgage rates, ranging from approximately 5 percent in January of 2009 to less than 4 percent today, and the spectrum of government programs the Administration established in response to the housing crisis, including the highly-publicized Making Home Affordable and Neighborhood Stabilization programs, the homeownership rate fell to 63.5 percent in the third quarter of FY 2016, maintaining a dismal five-decade low. e Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), designed to rein in financial institutions after the housing collapse, has touched every part of the mortgage lending industry and resulted in a long-term contraction in credit availability. Close to 50 regulatory reforms emanating from Dodd-Frank have focused on the mortgage industry alone. e proposed rules and subsequent regulations cover a wide array of the mortgage lending processes including: the ability to repay, risk retention, escrows, disclosures, homeownership counseling, servicing, appraisals, and loan originator compensation. Additionally, specified capital, liquidity requirements, and stress testing has driven corporations like General Electric to sell off its GE Capital real estate financing arm. Excessive enforcement actions, coupled with state and federal regulatory reforms, have discouraged mortgage lenders from making any loans that fall outside of the strict boundaries set I N D U S T R Y I N S I G H T / B R I A N M O N T G O M E R Y NOW THAT A REAL ESTATE DEVELOPER IS PRESIDENT-ELECT . . . With a trailblazing real estate mogul entering the Oval Office on January 20, a sharper focus on the U.S. housing delivery system is possible, if not likely.

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