Comprehensive Framework for Housing Finance System Reform

Resolved that National Association of Home Builders (NAHB) urge Congress and the Executive Branch to reaffirm support for housing as a national priority in fulfillment of the mandate of the Housing Act of 1949, which pledged a “decent home and suitable living environment for every American family.”

Further resolved that the best way to achieve the goals of the Housing Act of 1949 is through a multifaceted housing finance system with both competing and complementary components, including private, federal, state and regional sources of capital liquidity. The system should support a reasonable menu of sound mortgage products for both single family and multifamily housing, governed by prudent underwriting standards and adequate oversight and regulation.

Further resolved that NAHB support the following comprehensive framework for housing finance system reform:

1. Maintain a robust housing finance system through the creation of a new securitization system for conventional mortgages backed by private capital and a privately funded mortgage-backed securities insurance fund with a federal government backstop in the event of catastrophic circumstances.
2. Restart a carefully regulated, fully private mortgage-backed securities system.
3. Continue the roles of the federal government housing agencies.
4. Enhance the role of state and local housing finance agencies (HFAs) as a source of housing funds.
5. Support options for the Federal Home Loan Banks (FHLBanks) to expand their role in the housing finance system.  
6. Correct other flaws in the mortgage market that contributed to the causes of the Great Recession.

Resolution originally adopted: 2016.1, Resolution No. 5

• Housing Finance Committee