Housing reform: 2015 be the year of GSE reform’? - After initial movement on bi-partisan legislation last year, this is a dead effort as indicated by Banking Committee member and advocate for GSE reform, Senator Bob Corker (R-TN): “Congress will ignore GSE overhaul for next 16 months.” - Meanwhile, the housing market is moving on a number of fronts (we’ve seen this horror movie before): v Fannie Mae launched their “HomeReady Mortgage” program: You can (again) use the income from non-borrower household members. v Freddie and Fannie are working on a common Securitization Platform. Just for them (for now) but will eventually allow other participants. Question as to whether this is a transition to something new or simply securing the monopoly/duopoly of the GSE’s. Existing Home Sales (in millions) Existing Home Sales i. has increased 53.9% ° from its lowest level of ; \ A : 3.45 million in July 2010. | « 1. 2 SS a oe —- . am 2 Source: Deutsche Bank Deutsche Bank Francis J. Kelly Global Public Affairs [email protected] 7 HOUSE_OVERSIGHT_026801