Willis Co-Authors Housing Primers with the Bipartisan Policy Center

This December, the Bipartisan Policy Center, a Washington, DC-based think tank, published three housing primers co-authored by Furman Center Resident Research Fellow Mark Willis. A project of BPC's Housing Commission, the primers explain complex issues surrounding housing finance, including the role of the secondary market in mortgage financing, sharing credit risk with the private sector, and Ginnie Mae. 

 

The Role of Secondary Market in Mortgage Financing
The secondary market for mortgages plays a critical role in sustaining a healthy housing market. Few homebuyers have sufficient savings to purchase a home outright, and many need to borrow money to buy their first home or to move to another one. Without the ability to borrow against the value of the home they are purchasing, many prospective buyers would be shut out of the market. The secondary market allows participants in our mortgage system to access capital from investors in the United States and around the world. Read more >>

 

Reducing Taxpayer Exposure: Sharing Credit Risk with the Private Sector
In a housing finance system that includes a government guarantee, private capital that stands in the “first loss” position plays an important role in reducing the risk of taxpayer losses. “First loss” means the private sector stands ahead of the government in guaranteeing the timely payment of principal and interest on mortgagebacked securities (MBS) when borrowers default. Read more >>

 

 

Ginnie Mae: How Does it Work and What Does it Do?
The Government National Mortgage Association (or "Ginnie Mae") is a government corporation within the U.S. Department of Housing and Urban Development (HUD). It was established in 1968 when Fannie Mae was privatized. Its mission is to expand funding for mortgages that are insured or guaranteed by other federal agencies. Read more >>

 

 

Read more about the Furman Center's research on housing finance.