CEO of Fannie Mae Discusses the Mortgage Industry While in San Diego

In recent real estate news, Michael J. Williams, the President and CEO of Fannie Mae since April 2009, spoke at an annual real estate symposium the morning of March 3, 2011. The annual conference was held at the bay front Hilton in downtown San Diego and was sponsored, as usual, by the Burnham-Moores Center for Real Estate at the University of San Diego.

To keep you apprised of the future of mortgage lending, I’d like to detail some of the key points in Williams’ speech.

First, it’s important to note that a recent survey conducted by Fannie Mae reflects that “Americans are much more realistic about homeownership” in our current real estate environment. Williams added that it’s integral for America to go “back to common sense” when it comes to the real estate market. Fortunately, I speak from experience when I say that I believe that banks and borrowers are embracing these sentiments wholeheartedly.

Next, Williams asserted: “Back to the U.S. economy, we believe we’ll move from a fragile recovery to a steady expansion in 2011. We expect stronger growth in housing activity, especially in the second half of the year.” This is good news for Americans because it points to an optimistic economic future, especially concerning the real estate market.

Although Williams did say that he anticipates property prices across California to decrease a bit more in 2011 “albeit modest,” he also said that he anticipates that the housing market in San Diego may distinguish itself with fair growth. I don’t have to tell you that this is great news for homeowners in San Diego!

Finally, Williams discussed the possibility of the government eventually eradicating Fannie Mae in order to transition to a privatized market. While Williams declared that “We’re not engaging on providing options to the market,” he did maintain that there are several principal questions that government legislators must pose if trying to phase out Fannie Mae and Freddie Mac.

Examples of the pertinent questions that policymakers should be asking are:

 “What is the role of the 30 year fixed rate for the future?”
 “Do we want a secondary market?”
 “What's the role of the housing system to provide the same access to financing for Americans of all income levels?”

Only by addressing these concerns will the government be able to properly phase out Fannie Mae and Freddie Mac. Williams goes on to say that “We remain focused on how to serve the market during this period of transition to make sure we're building value for the company but also for the taxpayer.”

Though some aspects of the future of lending may be up in the air, I am optimistic about what the future holds. And one thing is for certain: I will be here to guide you through any changes to the mortgage industry. My purpose is to keep you educated and informed, so you make real estate choices that are right for you!

As always,

Enzo Morales