Mortgage Broking Is Stronger Than Ever, but We Can't Be Complacent

Housing Finance Reform Gains Momentum

Washington has suddenly become active on housing finance reform, according to the Mortgage Bankers Association. David Stevens, the association’s president, noted that until this year there had been no substantial change, but with the housing market now recovering and both the House and Senate involved, the odds of change have clearly increased.

President Obama praised bipartisan efforts in the Senate to create a system to replace Fannie Mae and Freddie Mac. Under the proposed framework, lenders would pay a fee if the government explicitly guaranteed certain mortgages.

Government Backing Remains Pervasive

Government involvement in residential credit has largely stayed unchanged because powerful interest groups—including banks, builders, and real estate agents, as well as homeowners—widely welcome the benefits.

Interest Rates Are Rising, but Still Low Historically

For mortgage brokers, this environment underscores the need to stay attentive to shifting conditions even as the industry appears stronger than ever.