Creating a fairer mortgage system and repairing the housing market will ease the frustration the country has with Wall Street, former senior adviser to President Obama, David Axelrod told the Mortgage Bankers Association, according to HousingWire.
Calling for a more transparent financial system, Axelrod examined how putting subprime mortgages into securities was the key factor in the economic downturn and should have been prevented. "Loans need to be given on terms borrowers can understand and afford. Some borrowers share the blame for agreeing to these problematic mortgages," he said, according to the report.
Axelrod believes such mortgages will never return, but called for a necessary fair lending standard. A clearly thought-out reduction in government regulation to promote business in the Houston real estate market and others nationwide is also necessary, he argued, such as bringing an end to the government-sponsored enterprises.
"We have to end Fannie and Freddie as we know them," Axelrod said, according to HousingWire. "There is no reason Fannie and Freddie should own 300,000 homes."
He continued by calling for the immediate appointment of Richard Cordray as head of the Consumer Financial Protection Bureau to get the process going.
Courtesy of 2M Realty News