Skip to main content

Most Economists Say GSEs Should be Consolidated and Change is Needed in Mortgage Interest Deduction

NationalMortgageProfessional.com
Mar 07, 2011

The National Association for Business Economics (NABE) has released its March 2011 Economic Policy Survey which surveyed its members on a number of policy issues. Respondents to the survey expressed concern about rising fiscal budget deficits and are eager for the president and Congress to curb federal spending. A key finding of the study was that more than 70 percent believe that Fannie Mae and Freddie Mac should be consolidated due to their similar purpose. Seven out of 10 of the survey panelists believe that Fannie Mae and Freddie Mac should ultimately be privatized. Eighteen percent believe that these entities should return to their prior status as government-sponsored enterprises (GSEs), while 12 percent think they should remain under government ownership. Most panelists surveyed believe that he GSEs should be gradually wound down, with 63 percent envisioning a two- to three- year downsizing process, and another 17 percent feeling the GSEs should be reduced over a six- to 10-year span. Under the Dodd-Frank Act, banks originating mortgage loans will be required to retain five percent of the risk unless those loans are Qualified Residential Mortgages (QRMs). Slightly more than one-half (51 percent) of NABE respondents believe that a mortgage should have a loan-to-value (LTV) ratio of no more than 80 percent to qualify as a QRM, while another 20 percent think that the LTV ratio should be 70 percent or less. Respondents to the NABE survey also found that less than 50 percent were in favor of retaining the full deductions for mortgage interest, state and local taxes, and charitable contributions, but in no case did a majority or even a plurality favor outright elimination. For each of these deductions, the median answer was to limit, but not eliminate, the deduction. The least support for retaining full deduction was for mortgage interest (24.4 percent) and highest for charitable contributions (47 percent), with state and local taxes in between at 39.6 percent.  For more information, visit www.nabe.com.
Ocwen Financial To Acquire Reverse Mortgage Servicing Platform

Ocwen Financial Corporation's wholly-owned subsidiary, PHH Mortgage Corporation will acquire RMS' reverse mortgage servicing platform.

Industry News
Jun 18, 2021
UniteCT Emergency Rental Assistance Succeeds

Thanks to the successful launch of the UniteCT program, emergency rental assistance funds are helping Connecticut residents maintain housing.

Industry News
Jun 17, 2021
Angel Oak Mortgage Announces Initial Public Offering

Angel Oak Mortgage announced its initial public offering of 7,200,000 shares of its common stock at $19 per share.

Industry News
Jun 17, 2021
Mortgage Apps Rebound After Three Consecutive Weeks Of Declines

The Mortgage Bankers Association reported the first increase in mortgage applications after a three consecutive weeks on declines.

Industry News
Jun 17, 2021
CFPB New Rule Prevents Predatory Lending To Military Service Members

The CFPB stipulates its authority to examine supervised financial institutions for risk to active duty servicemembers and their dependents.

Industry News
Jun 16, 2021
Inventory Begins A Slow Recovery

Inventory grew 3.9% from April to May, according to Zillow's latest Market Report, after a year of steady decline.

Industry News
Jun 16, 2021