Preserving the Dream of Small Owners in the United States, while resuming funding for private sector real estate: Trump's government wants to resolve the reform of the mortgage market, which has almost plunged the US economy in 2008.
Since the blaze of property over ten years ago, caused by the spread of risky loans, two giants of the mortgage market, Fannie Mae and Freddie Mac, fell into one of the states, a nationalization that had to be temporary.
The reform of these mortgage refinancing bodies that was supposed to be the "priority" of the Trump administration was slow because of its great complexity and various interests, but the US president ordered the vault and regulators last week to catch up with it.
In September 2008, 188 billion dollars of taxpayer money was needed to save two real estate refinancing organizations, which prevented them from taking off the huge mortgage market and possibly the entire US economy.
"The lack of real estate reform since the 2008 crisis has left the taxpayers to grace and helplessness for possible future financial support," the White House memorandum states.
Freddie Mac and Fannie Mae – whose names only phonetically adjust their acronyms as the Federal National Mortgage Association (FNMA) to Fannie Mae– – do not give loans, but buy real estate from the banks and guarantee them.
Two organizations, also called the Enterprise Sponsored Enterprise (GSE), are then committed to securities and resold to investors, securing worth $ 6 trillion, making it the world's largest bond market after the CNB bills.
This credit securitization financing system has led to the birth of a well-known 30-year mortgage, which is rare in the world for its duration, if not in Denmark. By enabling lower monthly wars, millions of Americans are allowed to become homeowners.
Hunting on the Insight Market
A decade after the crisis, if 2010 brings about a broad reform of the banking system to limit the systemic risk, refinancing the mortgage continues to face many unresolved issues.
How do you recapitalize and privatize these organizations with a government guarantee for resale mortgage securities? How can this entry-level credit sector open up to competition, as the government wants? How to maintain a specific public mission to treat lenders and borrowers regardless of the region or physiognomy of local real estate markets?
In his memorandum, Donald Trump does not say he will rely on Congress to implement this reform, but Finance Minister Steven Mnuchin has convinced he intends to work with elected officials on this issue.
Last week, the Senate Banking Commission held two-day hearings with experts and bankers who showed investors' interest in participating in this refinancing market for mortgages.
"Apetit real estate risk investor is measured in tens of billions of dollars a month," says Michael Bright, chair of the Structured Financial Industry (SFIG), a group of securitization specialists.
"Reform should be built on this dynamic to help private capital increase access to mortgage lending," he adds.
When the real estate market goes well, ensuring securitization of real estate is indeed the most cost-effective.
Fannie Mae and Freddie Mac paid off some $ 286 billion in dividends because they fell under government, far more than what was paid in 2008 to save them.
The introduction of private capital and increased competition, however, are troubling some social actors.
For Michael Calhoun, chairman of the Nonprofit Center for Lending Credit Center, he risks "hunting the hottest markets and serving only certain regions or types of borrowers".