Mitt Romney has not aired his views on the housing market’s federal backstop; but running mate Rep. Paul Ryan (R-Wis.) says the mortgage market should be privatized.
Such a proposal would face heavy opposition; Mortgage Bankers Association President David Stevens has warned that the absence of a government guarantee would hurt the availability of 30-year fixed loans and that Washington’s participation is needed to ensure that the mortgage market still functions during deep economic slumps.
“We’ve seen this on multiple occasions where private capital refused to invest in the market because of uncertainty in the economy,” said Stevens.
Source: “How Ryan May Shape Romney’s GSE Plan,” American Banker (08/15/12)
(c) Copyright 2012 Information Inc.