Are right. Good afternoon. Thank you for coming. My name is dan simundza. On a Research Scientist at the global forum on urban and regional resilience. On behalf of all my colleagues at the form id like to welcome you to two nights special event. Its an honor for me to have the opportunity to introduce our speaker tonight, doctor Susan Wharton gates. Dr. Gates wrote that freddie mac for nearly 20 years at times help position of the edge of the copies research magazine, compiler of credit risk data for the board of directors, policy director for freddie macs top login is some coordinator of the risk group and primary writer of ceo congressional testimony. She served as Vice President of the Public Policies and of corporate strategy. Our fascinating book days of slaughter which she will discuss shortly provides an insiders view of the implosion of the u. S. Housing finances. Since her time at freddie mac dr. Gates has worked as an academic, a consultant and an entrepreneur. Shes taught c
And freddie mac is in the conservatorship of veneers september 2008 and paulson describe the conservatorship as a timeout. Today fannie and freddie continued to dominate the market approximately 70 percent of the mortgages are back for the federal government while fannie and freddie with the Housing Market experiences a downturn the status quo is not a viable option. The Housing Finance system with two Government Enterprises in conservatorship as not a sustainable solution. Taxpayers today have to much risk with to a bigger role in the Mortgage Market. Those that have released proposals including the i see the day in several coauthors and many others. About what the future system should look like. In the meantime continuing to serve as a conspirator in regulator and as the Federal Home Loan Bank fhfa has undertaken a number of initiatives including those that began prior to the directors 10 year. One significant undertaking is the securitization platform that was originally intended to
System. Fannie mae and freddie mac have been in conservatorship for close to nine years. In september 2008, then treasury secretary hank paulson famously described the conservatorships as a timeout. Today, fannie and freddie along with fha continue to dominate the Mortgage Market. Approximately 70 of the mortgages are backed by the federal government. While fannie and freddie are currently earning profits, if the Housing Market experiences a downturn, taxpayers could again be on the hook for billions of dollars. The status quo is not a viable option. The Housing Finance system depends on two Government Sponsored Enterprises and perpetual conservatorship is not a sustainable solution. Taxpayers today bear too much risk and the government plays too big a role in the Mortgage Market. A number of groups have released proposals for reform in recent months. Including the mba, the icba, the milken institute, several coauthors writing jointly for the urban institute, and many others. The commi
A robust, well coordinated housing system is vital for achieving these goals and for our economy. We need mortgage credit in good times and bad. Reforms have addressed some of the problems of the precrisis system, the job is far from done. It may feel comfortable but it is unsustainable. The federal governments role in Housing Finance is even greater than it was before the crisis. It is a highly concentrated market. It leaves us with taxpayer liability and Systemic Risk. It is important to learn from the failure of the old system and apply lessons from postcrisis banking reform. We need to move to a system that attracts private capital. Market forces use to increase competition and help innovation. The financial crisis and is in 2009 and the economy has just reached its expansion. We are at or near full employment. The economy is still recovering and some regions. Nearing completion of a ram to including reform to address the crisis of any and freddie remains on to do list. As memories
Some of what jay does that they governor is serving on the federal Market Committee and getting regular talks on the economy, Monetary Policy and Financial Stability. But if they know from my own base of the site, a lot of what jay and others think of is behind the scenes and its not a visible to the public, including all the administrator work of the Federal Reserve board in overseeing the Federal Reserve system, which is a big job even when it is fully staffed, but of course there are currently three vacant seats on the board and jay tells me is chairing four of the seven am looking forward to a regulator sometime soon in the form of new governors to fill the vacancies. Before joining the senate, jay has distinguished career in Investment Banking and private equity world, including a partner in the group from 1997 to may 2005. Assistance in financing the Treasury Department and the early 1990s. In preparing for this event, i came across a transcript of his confirmation hearing in 199