The Real Deal Miami

NAR warns Congress about tweaking mortgage policy

March 31, 2011 04:35PM

Though the National Association of Realtors said it believes housing finance reform is needed, it warned Congress to tread carefully when altering Fannie May and Freddie Mac. Speaking before the House Subcommittee on Capital Markets, NAR President Ron Phipps said that while more private capital is needed to reduce government involvement in the mortgage finance market, the legislation currently under consideration that relies almost exclusively on private capital “will slow, if not stop, the housing and economic recovery.” Coupled with reactionary policy aimed at preventing the types of investors that brought the market to its knees, a complete lack of government involvement would destroy the recovery. The NAR, which represents 1.1 million real estate professionals, said it hoped Congress carefully weighs the benefits and consequences of all the mortgage policy options at its disposal. TRD