The National Association of Realtors (NAR) recently called for changes to the real estate financing structure that currently exists, and also reiterated its belief that the government plays an integral part in homeownership across the U.S.
Speaking on behalf of the group, NAR President-Elect Moe Veissi urged the government to take careful steps to improve on the current housing market.
“We must be better stewards of the U.S. housing finance system if it is to thrive and effectively serve American home buyers and mortgage investors into the future,” Veissi said in a testimony before the House Financial Services Subcommittee on International Monetary Policy and Trade.
Veissi, among other things, spoke out against the privatization of the secondary mortgage market, remarking that doing so could have a detrimental effect on common mortgage products like the 30-year fixed mortgage.
“The 30-year fixed-rate mortgage is the bedrock of the U.S housing finance system, and without government support, there’s no evidence that this type of mortgage would continue to exist,” Veissi said.
According to the NAR, reductions made by the government to conforming mortgage loan limits have already had a negative impact on the housing industry, as some borrowers are now seeing higher interest rates and are being forced into increasing down payments.
Some experts worry that more changes like the aforementioned reductions could hurt the housing market further.
“We need to make sure that future housing policies continue to reinforce our long-standing value of homeownership, for the future of our families and our country,” Veissi said.
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