July 8, 2019 By: Michael Stegman
Much of the writing that I will undertake in my fellowship year at the Joint Center for Housing Studies will address the Trump administration’s and Congress’s administrative and legislative efforts to reform the secondary mortgage market, including determining the fate of the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, which were taken over by the federal government in the midst of the housing market crash in 2008, and where they remain today.
To put the financial crisis in perspective: between the fourth quarter of 2006 and the first quarter of 2009, home prices, which had not declined nationally since the Great Depression, collapsed by nearly a third. By the end of 2009, nearly one in four homeowners owed more on their mortgage than their home was worth. By early 2010, mortgage delinquencies had more than doubled from pre-crisis levels, and nearly one in ten single-family loans was seriously delinquent or in foreclosure. Between the end of 2006 and 2010, over $6 trillion—more than a quarter—of Americans’ housing wealth was lost.
Consistent with a forty-year career of teaching graduate courses in housing finance and public policy, conducting research, and writing, data and evidence will continue to guide my work as a fellow, but based upon nearly five years working in the Obama administration, I will continue to view the opportunities and challenges of housing finance reform through a Democratic lens. As Counselor for Housing Finance Policy to the Secretary of the Treasury, I helped move a bipartisan reform bill (commonly referred to as Johnson-Crapo) out of the Senate Banking Committee in 2014 but failed to garner a large enough bipartisan majority to move it to the floor for a full Senate vote.....Read More
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