The housing market could look very different later this year if certain players get their way.
Among the possible changes coming to the housing sector: a reduced role for Fannie Mae and Freddie Mac in families' mortgages, with the hope that more private lenders feel confident enough to give out loans again.
"The president has previously stated he supports a comprehensive housing-finance reform, centered on the need "¦ to require more private capital in the system," Rep. Ed Royce said at National Journal's "Sustainable Homeownership: The Future of Housing Finance" conference, underwritten by 1st Alliance Lending, on Wednesday afternoon at the Newseum. "Exactly. And I think Congress should take him up on this and put a bill on his desk that does just that."
Royce, a California Republican who sits on the Financial Services Committee, lauded a recent bill from Senate Banking, Housing, and Urban Affairs Chairman Richard Shelby that would phase out Fannie Mae and Freddie Mac, calling them "the unfinished business of the financial crisis."
Since the housing bubble burst in 2007, credit—and by extension, homeownership—has declined, something that Housing and Urban Development Secretary Julián Castro said must be fixed in order to buoy the rest of the economy.