The National Association of Home Builders (NAHB) called on U.S. lawmakers to ensure that the federal government provides a backstop for the housing finance system to ensure an adequate flow of affordable housing credit. NAHB made the call as the U.S. Congress begins debating how to reform government-sponsored enterprises (GSEs) Fannie Mae, Freddie Mac, and the Federal Home Loan Bank System.
Testifying before the House Financial Services Committee, NAHB Third Vice Chairman Rick Judson, a builder and developer from Charlotte, NC, said the need for such support is underscored by the current state of affairs, with the GSEs, Federal Housing Administration and Ginnie Mae acting as the primary conduits for residential mortgage credit.
“NAHB feels the federal backstop must be a permanent fixture in order to ensure a consistent supply of mortgage liquidity as well as to allow rapid and effective responses to market dislocations and crises,” said Judson.
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