In collaboration with the Milken Institute, the CALIFORNIA ASSOCIATION OF REALTORS® is pleased to announce the release of a new report on housing finance, which features insights from C.A.R. CEO Joel Singer as well as prominent voices from banking, state government, and academia. The report was generated by a special panel session at the Milken Institute’s prestigious California Summit, an invitation-only event that took place during November 2013.
C.A.R. and its new Thought Leadership program played an integral role at the Summit by helping to shape this special session on finance reform, including facilitating Singer’s involvement as a lead discussant so that the interests of real estate professionals were strongly represented during this important discussion.
Singer joined the following panelists for an engaging conversation on the implications of various proposals to reform the nation’s housing finance system: Claudia Cappio, Executive Director, California Housing Finance Agency; Dwight Jaffee, Professor, Haas School of Business, University of California, Berkeley; Steven Mnuchin, Chairman and CEO, OneWest Bank; and Phillip Swagel, Senior Fellow, Milken Institute; Professor, University of Maryland School of Public Policy.
The roundtable discussion and the report outlines the panelists’ different perspectives and areas of consensus, in addition to background information on congressional proposals, proposed solutions, and the recovery of the market in the aftermath of the financial crisis.
Major areas of disagreement among panelists included the degree of systemic reform needed; the risk to taxpayers of an explicit government guarantee for mortgage-backed securities (MBS); and the correct mechanisms for future federal support for affordable housing. However, there was broad consensus that a regional approach to reducing loan limitations of government agencies and government-sponsored enterprises was important because broad reductions would disproportionately hurt California. Panelists also widely agreed that investors in mortgage-backed securities should retain enough capital to sustain, at least, the losses suffered in the most recent crisis.
In order to advance innovative economic and policy solutions, C.A.R. supported the 2013 California Summit and the panel discussion in an effort to both join and convene some of California's most influential thought leaders. C.A.R. plans to take an ever-increasing role in shaping the future of the industry through intellectual engagement and active dialogue under its new Thought Leadership Program. C.A.R. is proud to share this report with its entire membership and industry stakeholders.