Rebuilding Housing Finance: The Next Steps

Rebuilding Housing Finance: The Next Steps by Milken Institute

Moderator

Michael Mauboussin: Here’s what active managers can do

michael mauboussin, Credit Suisse, valuation and portfolio positioning, capital markets theory, competitive strategy analysis, decision making, skill versus luck, value investing, Legg Mason, The Success Equation, Think Twice: Harnessing the Power of Counterintuition, analysts, behavioral finance, More Than You Know: Finding Financial Wisdom in Unconventional Places, academics , valuewalkThe debate over active versus passive management continues as trends show the ongoing shift from active into passive funds. Q2 2020 hedge fund letters, conferences and more At the Morningstar Investment Conference, Michael Mauboussin of Counterpoint Global argued that the rise of index funds has made it more difficult to be an active manager. Drawing Read More


Ed DeMarco, Senior Fellow in Residence, Milken Institute; Former Acting Director, Federal Housing Finance Agency

Speakers

John Bartling, President and CEO, Invitation Homes

John Delaney, U.S. Congressman, Maryland

Nagendra Jayanty, Managing Director, Claren Road Asset Management, Carlyle Group

Rick Lazio, Partner, Jones Walker LLP; Former U.S. Congressman, New York

Phillip Swagel, Senior Fellow, Milken Institute; Professor, University of Maryland School of Public Policy

How will housing finance evolve amid regulatory change and the challenges of achieving large-scale reform legislation? Incremental changes are taking place, with risk transfer transactions by Fannie Mae and Freddie Mac bringing some private capital back into housing finance, while new capital requirements for Private Mortgage Insurers (PMI) further protect taxpayers. Still, a revival of private label securitization for mortgages not guaranteed by taxpayers remains a work in progress. At the same time, policymakers have focused on expanding access to credit through approaches that include a return to mortgages with low down payments and reducing insurance premiums at FHA and possibly the GSEs. The housing finance system is thus evolving even while Fannie and Freddie remain linchpins of the system and increasingly consolidated as government-controlled entities. This panel will assess the current state of the housing finance system and the impact of evolutionary changes under way on the housing industry, home buyers, and taxpayers.