Congress: Why Do It at All?
And, if You Choose to Do It,
Why Can’t the GSEs play?
Ignoring recent mortgage excesses and other financial rule bending, CWJC sets no statutory limits on the amount of business FMIC can securitize for the TBTF and SIFY financial institutions. It even does did away with the soft limits C-W initially had. (Class, can you say, "The draft bill was written in New York and on K Street!”)
There remain some FMIC discretionary limits, but--as any lawyer worth his/her salt will tell you--that which doesn’t take away gives!!
—as one friend said—“the bureaucratic monstrosity of Johnson-Crapo-Corker-Warner will smoothly replace GSE securitization mechanisms that have worked for decades and now account for two-thirds of all mortgage loans that are made.”
How many years of start, stop, new rules promulgated and taken down, credit easy, credit short will the builders, Realtors, and lenders put up with before they realize that this was a move they never should have chosen. (Think back to that little war in Iraq!)
The last time I checked, all of the Builders, Realtors, and mortgage lending professionals benefited from certainty, based onefficient, smooth and a constant flow of mortgage credit, priced accurately with the consumer in mind (since sales means revenue).