Today, U.S. Representative Ed Royce (R-Calif.) participated in a panel discussion entitled “How To Restart the Private Market for Mortgage Credit” during the Milken Institute Global Conference.
Participants included former Federal Housing Finance Agency Acting Director Edward DeMarco, U.S. Mortgage Insurers President and Executive Director Lindsey Johnson, and PennyMac Financial Services CEO Stanford Kurland.
The panel was tasked with assessing the progress to date with the GSEs’ credit risk transfers and exploring the conditions necessary for a restoration of a deep and liquid market for mortgage credit risk backed by private capital rather than taxpayers.
An excerpt of Rep. Royce’s remarks as prepared for delivery is below:
“I support an all-of-the-above approach: Congress should encourage an increase in both the amount and the types of risk-transfer transactions to the maximum amount that is economically and commercially viable. This would include both back-end risk sharing (loans already in portfolio) and as well as front-end sharing (at the point of origination). As the GSEs have so far focused largely on back-end, we may want to emphasize front-end risk transfer actions and transactions in which the first loss position is transferred. We may even want to consider a pilot program on mortgage insurance – to …read more
Source:: U.S. Rep. Ed Royce