Housing finance, beyond Fannie and Freddie

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August 11, 2013 by apicomely

A housing tax credit that helps

The tough question that remains, though, is how far to go. Fannie and Freddie have bought or guaranteed nearly half of the home loans outstanding in the United States. Those purchases and guarantees enable banks to sell the mortgages on their books to investors, freeing up the capital needed to make more loans. In ordinary times, their actions helped reduce the interest rate on home loans.

Indiabulls Housing Finance to raise Rs 10,500 crore debt in Fiscal year 2014

Fannie Mae and Freddie Mac were seized by regulators in 2008 as defaults on risky loans drove them toward insolvency, and taxpayers have spent $187.5 billion to keep them afloat. Republicans and Democrats alike are calling for the companies to be liquidated and replaced with a system based more on private capital. Republican Bob Corker of Tennessee and Democrat Mark Warner of Virginia , the authors of a housing bill that has support from both parties, say they think an overhaul could get through both the Senate and House this year. Time Right I know theres a real desire to get GSE reform done this fall and I think people understand that the time is right, Corker said in an interview. Others are less optimistic.

Finance Minister Alexander Chikwanda admits to budget deficit

Given the hardening of rates in the money market, the company will be re-jigging its strategy to increase the share of securitisation for fund raising, he said. “We will be raising around Rs 10,500 crore this fiscal term. The share of portfolio sell down (securitisation) will increase due to the recent events”, Indiabulls Housing Finance (IHFL) Chief Executive Gagan Banga told the Press Trust of India. He said that 40 per cent of the funds will be arranged through banks, while bonds will also account for a similar component and the portfolio sell down will increase to 20 per cent.

Obama Endorsement Builds Momentum for Housing-Finance Overhaul

Obama Speech on U.S. Economy, Housing Market

The global economic situation has not been very favourable, this has posed a challenge to us on the revenue side. Our projections have not matched our financing requirements. Mr. Chikwanda however vehemently denied that the cost of financing bye elections has contributed to the fiscal challenges. Bye elections are budgeted for and they are constitutional. We have not over spent on bye elections. He added that government will keep a tight grip on borrowing despite the budget deficit.

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