Document Type

Article

Publication Date

6-2019

Keywords

Housing finance, Mortgages, Affordable housing, Home ownership

Disciplines

Banking and Finance Law

Abstract

Those who believe that government plays a positive role in the housing market by supporting affordable and sustainable homeownership have a fight ahead of them to move their agenda forward. The move to redistribute credit risk in the mortgage market from the government to the private sector should be seen as a step in the direction of creating a healthy market for mortgages that appropriately balances the role of the federal government with that of the private sector. But the jury is still out on whether the right type of regulation will be in place as the private sector gains market share under Calabria’s free market initiatives. Although this is not a hopeful conclusion for advocates of affordable and sustainable housing, it is the best we can hope for until Congress returns to bipartisan ground to build a strong and resilient housing finance system for a broad swath of 21st century Americans.

Comments

This article predates the author's affiliation with Cornell Law School.

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