Wednesday, November 29, 2017

Subcommittee Examines Ginnie Mae’s Role in Housing Finance System

November 29,2017
onesmallvoice


WASHINGTON DC, The Housing and Insurance Subcommittee met today to assess the role of the Government National Mortgage Association – commonly referred to as “Ginnie Mae” – as members continued to examine the need to reform the U.S. housing finance system.

“It’s important that we understand how Ginnie has been able to manage their growth, which has been significant, and their responsibility to the taxpayer. We also must further explore the Ginnie model more in depth as we look to reform the housing finance system and bring more private sector skin in the game,” said Subcommittee Chairman Sean Duffy (R-WI). “As I have said at previous hearings, I think we need to move forward with housing finance reform in a bipartisan manner. I hope today’s hearing will help inform members on both sides of the aisle on what Ginnie’s future role in the housing market could be.” Ginnie Mae guarantees investors the timely payment of principal and interest on mortgage-backed securities (MBS) collateralized by loans insured or guaranteed by the federal government, such as loans insured by Federal Housing Administration or guaranteed by the Department of Veterans Affairs. Ginnie Mae uses the explicit full faith and credit guarantee of the U.S. Government to back its MBS.

Other guarantors or issuers of loans eligible as collateral for Ginnie Mae MBS include the Department of Agriculture’s Rural Housing Service and the Department of Housing and Urban Development’s Office of Public and Indian Housing.

Key Takeaways

Ginnie Mae’s portfolio has grown significantly since it was founded in 1968. America deserves a better housing finance system – one that’s designed for homeowners and taxpayers where every American works hard and plays by the rules so that they can have opportunities and make choices to buy a home they can actually afford to keep. America needs a housing policy that is sustainable over time, not one that causes endless boom-bust cycles in real estate that harm our economy. Reforming the housing finance system would ensure equal market access for lenders of all sizes and business models, allowing for more competitive prices to occur. Topline Quotes from Witnesses “As Secretary Carson said recently in his testimony to this committee, reform to our secondary mortgage market is an important piece of unfinished business from the housing crisis. Reform efforts should be built on shared goals of ensuring a well-functioning housing finance system that provides credit access, and reduces overall taxpayer exposure. It is notable that many of the recent housing finance reform proposals include, in some way, an explicit government guaranty as a catastrophic backstop for some portion of the mortgage market.” – Michael R. Bright, Acting President, Government National Mortgage Association

‘The problem is not so much who is running the CFPB. The problem is the CFPB.’

November 29.2017
onesmallvoice


WASHINGTON DC, House Financial Services Committee Chairman Jeb Hensarling (R-TX) was interviewed on Tuesday and Wednesday about the change in leadership at the Consumer Financial Protection Bureau (CFPB). Click on the images below to watch.

“This is a last, desperate gasp of the previous director who came in under a legal cloud and he will go out under a legal cloud. This is a waste of time. But the problem is not so much who is running the CFPB. The problem is the CFPB…This is an agency that absolutely has to be reformed.”

“We have an institution that is arguably the most powerful, unaccountable agency in the history of our Republic. Ostensibly they’re supposed to be on the vanguard, on the forefront of consumer protection and they’re totally asleep at the wheel on Wells Fargo, where obviously cases of theft and cases of fraud took place.”

“We have an institution that is arguably the most powerful, unaccountable agency in the history of our Republic. Ostensibly they’re supposed to be on the vanguard, on the forefront of consumer protection and they’re totally asleep at the wheel on Wells Fargo, where obviously cases of theft and cases of fraud took place.”

Tuesday, October 31, 2017

Consumer confidence Jumps to highest level since December 2000

October 31.2017
one small voice 

Ridgewood NJ, Consumer confidence rose to 125.9 in October, according to the Conference Board.The rating is at the highest level since December 2000.This accounts for Americans' views of current economic conditions and their expectations for the next six months.

Consumers were even more optimistic in October than economists polled by Reuters expected. Boosted by the job market which had not received such favorable ratings since the summer of 2001.The economic weight of Hurricanes Harvey and Irma pulled down the spirits of U.S. consumers in September, when the index was relatively flat.The high level of confidence suggests the economy will continue to expand for the rest of 2017, 

The index takes into account Americans' views of current economic conditions and their expectations for the next six months. Economists pay close attention to the numbers because consumer spending accounts for about 70 percent of U.S. economic activity.

Wednesday, October 25, 2017

Consumers Win As Congress Overturns Unconstitutional Bureaucracy’s Harmful Rule

October 25,2017
one small voice

WASHINGTON DC,  Financial Services Committee Chairman Jeb Hensarling (R-TX) issued the following statement about the Senate's vote to reject the CFPB’s rule to deprive consumers of a low-cost, easy way to resolve legal disputes without having to hire trial lawyers:

“This is a victory for consumers, a defeat for the wealthy trial lawyers lobby and a rejection of the unchecked, unconstitutional and unaccountable CFPB.  Instead of carrying water for the Democrats’ favored special interests, the CFPB should actually work to protect consumers.  I commend the Senate for joining the House in fighting for consumers and for draining the bureaucratic swamp of yet another political regulation.  Laws that Americans live under must be written by their elected representatives, not unelected and unaccountable bureaucrats.  It’s good to see Congress reclaim its legislative authority and operate as our Constitution requires.”

Friday, October 13, 2017

U.S. consumer sentiment surged to a 13-year high


October 13,2017
one small voice


U.S. consumer sentiment surged to a 13-year high as Americans’ perceptions of the economy and their own finances rebounded following several major hurricanes, a University of Michigan survey showed Friday.


Highlights of Michigan Sentiment (October, preliminary)

-Sentiment index rose to 101.1 (est. 95), highest since Jan. 2004, from 95.1 in Sept.
-Current conditions gauge, which measures Americans’ perceptions of their finances, jumped to 116.4, highest since Nov. 2000, from 111.7
-Expectations measure increased to 91.3, highest since Jan. 2004, from 84.4

Thursday, September 14, 2017

Trump Prohibits Sale of Lattice Semiconductor Corporation to China Venture Capital Fund under the Defense Production Act of 1950

September 14,2017
one small voice


Washington DC, President Donald J. Trump issued an order prohibiting the acquisition of Lattice Semiconductor Corporation (Lattice) by, among others, China Venture Capital Fund Corporation Limited (CVCF). CVCF is a Chinese corporation owned by Chinese state-owned entities that manages industrial investments and venture capital.

The President made the decision to issue this order under section 721 of the Defense Production Act of 1950, as amended by the Foreign Investment and National Security Act of 2007. Under the Defense Production Act, the President is authorized to suspend or prohibit certain acquisitions that result in foreign control of a United States business if he concludes, among other things, that there is credible evidence that the foreign interest exercising control might take action that threatens to impair the national security of the United States. The President reached this decision upon consideration of the appropriate factors set forth in section 721 of the Defense Production Act and a review of a recommendation from the Committee on Foreign Investment in the United States. The national-security risk posed by the transaction relates to, among other things, the potential transfer of intellectual property to the foreign acquirer, the Chinese government’s role in supporting this transaction, the importance of semiconductor supply chain integrity to the United States Government, and the use of Lattice products by the United States Government.

Wednesday, August 30, 2017

US revised second-quarter GDP Jumps to 3.0% vs 2.7% rise expected

August 30,2017
the staff of the Ridgewood blog


Ridgewood NJ, the U.S. economy grew faster than initially thought in the second quarter, notching its quickest pace in more than two years.
The Economy also showed signs that the momentum was sustained at the start of the third quarter.
Gross domestic product (GDP) increased at a 3.0 percent annual rate in the April-June period, the Commerce Department said.