Reforming Housing Finance in the Absence of Legislation

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Reforming Housing Finance in the Absence of Legislation Related Articles Subscribe CFPB Conservatorship Fannie Mae FHFA Freddie Mac GSEs HOUSING Housing Finance System Milken Institute 2019-01-09 Radhika Ojha Share Save in Daily Dose, Featured, Government, News The Best Markets For Residential Property Investors 2 days ago Previous: Reimagining Asset Disposition in Chapter 7 Bankruptcies Next: RESPA Damages Denied for Delinquent Mortgagor Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days agocenter_img Home / Daily Dose / Reforming Housing Finance in the Absence of Legislation Tagged with: CFPB Conservatorship Fannie Mae FHFA Freddie Mac GSEs HOUSING Housing Finance System Milken Institute January 9, 2019 1,372 Views Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas. About Author: Radhika Ojha How can the housing finance system be reformed in the absence of legislation? A new report by the Milken Institute sets out to answer this question, by building upon the progress that has been made towards a safer housing finance system through the conservatorship of the government-sponsored enterprises (GSEs) under the Federal Housing Finance Agency (FHFA).Titled, “A Blueprint for Administrative Reform of the Housing Finance System,” the report makes a case for why the government must avoid releasing the Fannie Mae and Freddie Mac from conservatorship without fixing some of the flaws in their charter. The report’s authors, Eric Kaplan, Michael Stegman, Phillip Swagel, and Theodore Tozer outline actions that can address some of the challenges related to legislative action to set the stage for further reform that “includes changes to the GSE charters.””Ending the conservatorship without further reforms would preserve flaws that allow the GSEs to privatize profits and socialize losses,” said co-author Eric Kaplan, Director of Housing Finance Policy at the Milken Institute Center for Financial Markets. “Implementing our recommendations would help strengthen the housing finance system and pave the way for bipartisan legislation putting in place the last piece of the housing finance reform puzzle.”The report argues that the GSEs’ post-crisis success has occurred under the protected “duopolistic status that impedes entry and competition, unparalleled access to capital with government backing,” and due to the strong economic environment that reflects historically low delinquencies.Some of the actions recommended by the report include greater transparency into and FHFA oversight of GSE activities, more risk-based pricing combined with explicit affordable housing subsidies, and finalizing a GSE capital rule that supports a housing finance system that is “driven by private capital that can survive future downturns and maintain liquidity for creditworthy borrowers throughout the economic cycle.”The report also made recommendations for the Consumer Financial Protection Bureau (CFPB). They include actions for CFPB on the ability to repay/qualified mortgage rule and facilitating innovation while maintaining consumer protection.Click here to read the full report. The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days agolast_img read more

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Statement to Parliament: Statement to Parliament on Horizon project at Wylfa Newydd

first_imgWith permission, Mr Speaker, I would like to make a statement on the proposed Wylfa Newydd nuclear power plant.Britain was the world’s first civil nuclear nation, and nuclear energy has powered homes and businesses in this country for over 60 years and currently provides around 20% of our electricity needs with low carbon, secure and reliable baseload power.Nuclear has an important role to play in the UK’s energy future as we transition to the low carbon economy. However, we have always been clear that no technology will be pursued at any price: new nuclear must provide value for money for consumers and taxpayers.In 2016, we agreed to support the first new nuclear power station in a generation at Hinkley Point C in Somerset. Developers have set out proposals for a further five plants to come online over the next few decades. As I said at the time the contract for Hinkley Point C was agreed, the Government expects future nuclear projects to provide lower cost electricity than Hinkley Point C.The next project in this pipeline is the proposed Wylfa Newydd power station, based on Anglesey in North Wales. The project developers Horizon Nuclear Power, who are owned by the Japanese company Hitachi, have developed proposals to build two reactors with a combined capacity of 2.9GW. Hitachi’s reactor design has been deployed on time and on budget in Japan, and last December completed the Generic Design Assessment process run by the UK’s independent nuclear regulator, having satisfied our strict safety standards. Horizon submitted their application for Development Consent to the Planning Inspectorate last Friday.I am pleased to confirm that today Hitachi and the UK Government have decided to enter into negotiations in relation to the proposed Wylfa Newydd project. This is an important next step for the project, although no decision has been yet taken to proceed, and the successful conclusion of these negotiations will of course be subject to full Government, regulatory and other approvals, including but not limited to value for money, due diligence and State Aid requirements.A key focus of discussions with Hitachi has been – and will continue to be – achieving lower cost electricity for consumers. Both the National Audit Office and the Public Accounts Committee have recommended that the Government consider variations from the Hinkley Point C financing model in order to reduce costs to consumers. In line with the NAO and PAC’s clear findings and recommendations, for this project the Government will be considering direct investment alongside Hitachi, and the Japanese Government agencies and other parties. Our partnership on this project would serve as a further example of civil nuclear collaboration between the UK and Japan, building on the Memorandum of Co-operation that was signed in 2016 with that country.The UK is likely to need significant new nuclear capacity in order to meet our carbon reduction commitments at least cost, particularly as we electrify more of our transport and heating. So alongside entering negotiations in relation to Wylfa Newydd, the Government will also continue to engage with the other developers in the UK new nuclear market on their proposals for further projects. This currently includes EDF over their plans for a follow-on EPR project at Sizewell C, CGN over their proposals for an HPR1000 reactor at Bradwell, and Toshiba regarding the future of the NuGen project at Moorside, as well as Hitachi over potential further ABWR units at Wylfa and Oldbury.It remains the Government’s objective in the longer term that new nuclear projects like other energy infrastructure should be financed by the private sector, and so alongside our discussions with developers we will be reviewing the viability of a regulated asset base model as a sustainable funding model based on private finance for future projects beyond Wylfa, which could deliver the Government’s objectives in terms of value for money, fiscal responsibility and decarbonisation.Support for nuclear is reiterated in the Nuclear Sector Deal which we will publish with the sector shortly. That deal, which the Government has developed in close partnership with the nuclear sector, will also include ambitious proposals to drive down costs across the sector, including by reducing the cost of construction in new build and by investing in innovation in advanced nuclear technologies.If the Wylfa project were to go forward following this period of negotiation, it would provide around 6% of our current electricity needs until nearly the end of the century, whilst supporting thousands of jobs during construction and operation, particularly in Wales.The actions this Government is taking will support a long-term pipeline for new nuclear projects in this country, and will provide the visibility needed to enable the industry to invest in the skills – including through the National Nuclear College– and the UK supply chain capabilities across the country. I will continue to keep the House informed during the negotiations.last_img read more

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