The Future of Mortgage Funding and the Impact of GSE Reform in the U.S

Abstract

It has become very fashionable to discuss the elimination of the GSEs. However, we believe it will be nearly impossible to do so within the next five years. The GSEs are likely in five years to look very much as they do today. The panel discusses why GSE reform will be difficult in the near term, GSE reform alternatives that have been proposed, what will be required to revive the private label securitization market, recent purchase and refinancing activity, and the role of investors in absorbing the large overhang of seriously delinquent and foreclosed homes.