NAR opposes full privatization of Fannie Mae and Freddie Mac

WASHINGTON – Nov. 12, 2008 – To insure that there is sufficient capital to support mortgage lending to qualified borrowers, the National Association of Realtors (NAR) has adopted principles that recommend continued government involvement in the secondary mortgage market.

“As the leading advocate for housing issues, NAR developed these principles for consideration by the 111th Congress and the new presidential administration, in light of disruptions in the credit markets and the conservatorship of Fannie Mae and Freddie Mac,” says NAR President Charles McMillan. “NAR believes that the federal government must continue to play a role in the mortgage markets to insure the continued flow of capital.”

NAR’s Presidential Advisory Group on Government Sponsored Enterprises developed the new principles to encourage a strong financing environment for homeownership. The principles call on the government to ensure an active secondary mortgage market; support affordable mortgage rates for qualified borrowers; establish reasonable affordable housing goals; require institutions to offer the lowest possible mortgage rate based on a borrower’s qualifications; require sound underwriting standards with mortgage related securities; and establish rigorous oversight.

“Realtors look forward to working with the new Congress and administration to help stabilize the housing industry and the U.S. economy, and to make sure we stem the rise of foreclosures and keep more families in their homes,” said McMillan.

© 2008 FLORIDA ASSOCIATION OF REALTORS®

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