Hoping for Holistic
While it will take time for the swamped Biden Administration to craft U.S. housing policy, elements of it emerged last week during stimulus negotiations, the President’s statement, and HUD-nominee Fudge’s appearance before Senate Banking. After pandemic relief, racial-equity will be the driving near-term force in Administration and FHFA actions, consigning the holistic review Fudge recommended to a time and place far, far away likely never to be found in the halls of Congress. Instead, de facto restructuring will come via racial-equity action, hearings putting pressure on FHFA, near-term moves on FHA premiums, realigned GSE affordable-housing goals, systemic regulation, and – as the year progresses – QRM and bank-capital rewrites.