Washington, DC — John Taylor, President & CEO of the National Community Reinvestment Coalition (NCRC) today made this statement about proposals in Congress for Fannie Mae and Freddie Mac, and federal agency proposals on the Qualified Residential Mortgage (QRM): “How we address Fannie Mae and Freddie Mac, and the definition of the Qualified Residential Mortgage, will …
Washington, DC — John Taylor, president & CEO of the National Community Reinvestment Coalition (NCRC) today made this statement about the anticipated House vote to terminate the Home Affordable Modification Program (HAMP):
“Given the fragile state of the economy, Congress and the Administration need to stop procrastinating and create proposals that actually solve the country’s financial problems, not ignore them. Congress’ decision this week to eliminate HAMP does nothing but cause further agony to the millions of hard-working families who are on the brink of losing their homes.”
“If anything, Congress should be debating how HAMP can be reengineered and improved. The Administration also needs to step up, and take a hard line to ensure that the industry meets the requirements of the program. And our government needs to stop tip-toeing around the housing crisis and start addressing it head-on with concrete, actionable solutions that lend a hand to the American people rather than providing yet another escape hatch for Wall Street.”
Washington, DC — John Taylor, President & CEO of the National Community Reinvestment Coalition (NCRC) today made this statement on proposals to eliminate housing programs before the House Financial Services’ Subcommittee on Insurance, Housing and Community Opportunity:
“The failure of Congress to mandate foreclosure assistance programs that address the whole magnitude of the crisis is a reason to do more, instead of nothing. A vacuum of leadership on foreclosures will be filled by these reckless and heartless proposals unless the Administration and the rest of Congress step up, and not continue to penny ante and punt. Only twisted thinking concludes that leaving people to fend for themselves when they are kicked out of their homes is the correct solution to our economic woes. Simply put, it will make a terrible problem even worse. The real cost of these housing programs is in the lost opportunity to expand their scope. Given the fragile state of our economy, we need proposals that solve the problem, not ignore it; if we don’t, I fear we’ll be having this same debate years from now.
Analysis of the Obama Administration’s Housing Finance Proposals (1.45mb)
Washington, DC — The following is a statement from John Taylor, President & CEO of the National Community Reinvestment Coalition (NCRC), on the Administration’s plan for Fannie Mae and Freddie Mac:
“The only measure for the success of this plan is whether or not all creditworthy borrowers have the opportunity to purchase a home. If working class families are locked out of homeownership, and we end up with a housing finance system that serves only the well-heeled, then we will have failed miserably.
“Historically, working class people have had access to private sector capital in order to purchase a home, with guarantees by the government to ensure affordability. The Administration’s plan, by emphasis and omission, suggests that this country’s commitment to ensuring homeownership for working families will be lessened.
Ensuring affordable housing for millions of Americans should not be sole responsibility of the government
Washington, DC — John Taylor, President & CEO, National Community Reinvestment Coalition, made this statement today on Administration and Congressional proposals for Fannie Mae and Freddie Mac:”Privatizing Fannie Mae and Freddie Mac will exacerbate problems in the housing market, not solve them. We must recognize that for 95% of Fannie and Freddie’s history they did a great job in assisting millions of Americans to purchase a home. If they go away, I fear we’ll see two marketplaces — one for the well heeled, and a more costly system of finance for everyone else.
“If the private market will enjoy the benefit of government guarantees, then there must be a strong duty to serve the affordable housing needs of the country. Putting Wall Street in the driver seat without adequate oversight and a commitment to affordable housing would be a mistake. We still don’t have adequate funding and authority for oversight by the SEC and other agencies to ensure that they behave responsibly.
Going Forward, Two Big Lessons Learned: Don’t Put the Fox in the Henhouse, and Regulation Matters
Washington, DC — John Taylor, President and CEO of the National Community Reinvestment Coalition, released this statement today about the Financial Crisis Inquiry Commission report and proposals to return the government-sponsored entities to the private sector without affordable housing goals:
This report puts the blame where it belongs on Wall Street and the federal regulators who looked the other way. It also puts to rest the myth that making capital available to low or moderate-income borrowers was a cause of the crisis.
While the report may be a day late and a dollar short, the lessons going forward are that regulators need the authority and the resources to stay on top of financial innovations and make sure risk taking does not become reckless. The other very important lesson is that regulation matters when it comes to protecting consumers. There is an appropriate and necessary federal role in ensuring access to capital and markets for nontraditional borrowers, which is why the affordable housing goals must remain a part of the mission of the government-sponsored entities.
By: Lori Ann LaRocco CNBC Sr. Talent Producer Published: Monday, 29 Nov 2010 | 10:17 AM ET The foreclosure crisis still divides us into two camps. There are those who believe that foreclosing rapidly on homes subject to defaulted mortgages is vital to clearing the market. Others believe we should do everything we can …
NCRC Urges Fed To Stimulate Economy By Demanding Principal Reductions On Its Loans Worth $1.1 Trillion Taylor Says Federal Government Has Power, Authority to Obtain Reductions on Majority of Mortgage Market Washington, DC – In its efforts to stimulate the economy, the Federal Reserve should demand that banks reduce the principal balances on $1.1 trillion …
This week, NCRC filed comments to the US Department of Treasury and US Department of Housing and Urban Development regarding the future of the Government Sponsored Enterprises (GSEs), the regulation of the housing finance system, and the role of government in the finance system. Click here to download the Comments as a PDF
NCRC Urges Committee Withstand Pressure to Remove Independent Appraisals, Sounds Concern on Rating Agencies’ Conflict of Interest But Praises Senate Vote on Homeowner Advocate in HAMP Program
Washington, DC (June 16, 2010) — Today John Taylor, CEO and President of the National Community Reinvestment Coalition, urged the conference committee to withstand pressure to remove independent appraisal requirements on mortgages in the financial reform bill and expressed disappointment with its failure to resolve the troubling conflict of interest between credit rating agencies and Wall Street. Taylor also urged inclusion of an Office of the Homeowner Advocate in HAMP to conduct loan modification appeals brought by homeowners and serve as a policy voice for homeowners.
Taylor said: “Financial reform cannot happen with removing the existing monetary incentives we have allowed the financial industry to build into financial products, including mortgages and the services rating agencies provide. We took a step backward yesterday by refusing to deal with the rating agencies’ conflict of interest. We cannot afford to take another step backwards by caving to pressure from the brokers and Realtors to remove independent appraisals on mortgages. Inflated valuations on homes helped blow the housing bubble bigger and bigger until it burst. To prevent another crisis, we need to remove the financial incentives to do more harm than good.”