The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Real estate: Slow reforms hamper US MBS

As US house prices continue to rise, efforts to reform how the country’s housing market is financed are faltering.

By Ben Edwards

Bond investors are resisting attempts to encourage them back into the US mortgage market to shift the burden of any future losses away from the government’s mortgage agencies Fannie Mae and Freddie Mac

US senators Bob Corker and Mark Warner tabled a bill that would have wound down Fannie Mae and Freddie Mac and lured back private capital but it failed to secure cross-party support in the Senate last year and now with the US general election in November and a presidential election in 2016, the chances of imminent reform have faded.

John Sim-160x186

 The biggest reason [for the dearth of issuance] is a lack of broader participation by the larger banks

John Sim,

“There was a lot of very visible activity a year ago, but there’s been nothing formal that’s happened since then,” says Steve Abrahams, head of MBS and securitization research at Deutsche Bank in New York. “Congress seems to have pretty much given up on hopes of getting anything done either this year or next year.”

The US government pledged to reform the country’s housing market after the 2008 financial crisis by reducing state support for home loans and by introducing tougher regulation.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree