Washington, D.C. — For the first time since early 2011, President Barack Obama today outlined his agenda for strengthening the nation’s housing market and laid out a plan for the future of Fannie Mae and Freddie Mac. The president endorsed moving toward an explicitly priced, catastrophic government backstop, with provisions to support broad access and affordability for all parts of the market and continued support for affordable rental housing.
In response to the president’s speech, Julia Gordon, Director of Housing Finance and Policy at the Center for American Progress, issued the following statement:
We welcome President Obama’s commitment to a limited but explicit government role in the housing market. The president recognizes that the technical details of housing finance reform are not ends in and of themselves but are a means to provide affordable, stable housing to our nation’s families. A housing finance system designed to provide broad access to all markets will strengthen families and communities, contribute to economic growth, provide opportunities for investors, and protect taxpayers from future bailouts. The president’s proposals add to a growing bipartisan consensus around the importance of tackling this issue.
The president’s recommendations closely track those made in January 2011 by CAP’s Mortgage Finance Working Group. They also reflect principles set forth in a recent report edited by the Center for American Progress and the National Council of La Raza, “Making the Mortgage Market Work for America’s Families.”
The following experts are available to comment on the president’s speech:
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