President Spivey's Visit To The White House – On the Johnson-Crapo GSE Reform Proposal

Over the past several weeks, I was invited to attend a series of White House meetings to discuss GSE reform as presented in the Johnson-Crapo legislative proposal nolvadex tablets buy online. Present in these discussions were high-ranking White House officials, HUD Secretary Shaun Donovan and FHA Commissioner Carol Galante, among others.

NAREB’s perspectives and concerns were brought to the discussion table and heard by the 25-30 people attending each meeting.  Other invitees included representatives from the homebuilders, mortgage bankers, credit unions, small banks, multi-family housing, NAR, as well as participation from Hispanic and Asian-American real estate trade groups.  NAREB’s “voice,” was heard and signaled among those present that any proposal appearing to threaten affordable homeownership was not in the best interest of African Americans and therefore, could not be supported by NAREB.

In specific, I conveyed NAREB’s position on five key points in the Johnson-Crapo proposal.

Point #1: The proposal recommends a 3.5 percent (3.5%) down payment for first-time home buyers only.

NAREB’s Position:  All buyers should have access to the 3.5 % down payment.  Millions of people are still financially underwater and have lost the equity in their homes as a result of the nation’s economic meltdown and the on-going fitful recovery.

Point #2:  Currently FHA mortgages carry mortgage insurance for the lifetime of the mortgage. 

 NAREB’s Position:  Once a borrower has reached a 20 percent (20%) home equity threshold, mortgage insurance should be eliminated as it is with conventional financing programs.

Point #3:  The proposal does not take into consideration the value of pre- and post-homeownership counseling as a proven way of minimizing lender risk.

NAREB’s Position:  Pre- and post-homeownership counseling should be a consideration  in lieu of expense overlays that can come in the form of additional points, higher mortgage insurance and mortgage interest rates, as examples.

Point # 4:  The White House projected that it may take as long as 10 to 15 years before the new iteration of Fannie Mae and Freddie Mac becomes final and fully functional.

NAREB’s Position:  Fannie Mae and Freddie Mac should remain in place operating on a separate, parallel course throughout the length of the transition and continue to do so until the new entity’s operational “kinks” are identified and worked though.

Point #5:  The absence of language in the Johnson-Crapo proposal recognizing or acknowledging Affordable Housing Goals.

NAREB’s Position:  Affordable Housing Goals need to remain intact and included in any GSE reform proposal.

Each of these points was brought forward and discussed at the five meetings I either attended as NAREB’s representative or with accompaniment by Anita Estell, NAREB’s legislative consultant.   I would be remiss if I did not state, that without NAREB representation at these meetings, the African American perspective would not have been brought forth for discussion or consideration.

It is also important to note that the Johnson-Crapo proposal is not in final form.  I will continue to be the voice for NAREB at all future meetings as it, or any similar legislative proposal focused on GSE reform is introduced and begins its journey through the legislative process.  Our perspective and voice will be heard.