Obama touts mortgage finance plan, highlights private sector role
They had a model for getting loans to the American people that didnt work. It was basically, heads they win, tails taxpayers lose model and so what the president is going to say today is we need to end that model. And we need to have a housing financing system going forward that first makes sure private capital sits at the center of our housing financing system and second we cant put taxpayers on the hook in the way we did before, Housing Secretary Shaun Donovan told ABC News. Obama wants the government to play a more limited and targeted role in supporting the mortgage market, according to an administration official, one in which private capital must be wiped out before the federal government provides any catastrophic guarantee. The president is also expected to renew his call for Congress to make it easier for homeowners to refinance at lower rates and highlight his plan to make housing more affordable for the middle class. We have to make sure we have affordable housing across this country. You know one of the things that got us into this crisis is that we sort of had a policy that said everyone has to be a homeowner. And the truth is some families want to rent their housing. Some people cant afford to be homeowners. So we need to make sure we have a balanced housing policy in this country, Donovan said.
We’ve got to build on this progress, we’re not where we need to be,” he said. The core of Obama’s proposal involves winding down mortgage finance giants Fannie Mae and Freddie Mac, which own or guarantee more than half of all U.S. home loans and are critical to keeping capital flowing to lenders and borrowers. The two government-sponsored entities have drawn heavy fire for allowing people to take risks and buy homes they could not afford.
NorthStar Realty Finance Announces Pricing of Public Offering of Common Stock
Markets closed NorthStar Realty Finance Announces Pricing of Public Offering of Common Stock Press Release: NorthStar Realty Finance Corp. 14 hours ago 9.57 -0.3200 NEW YORK, Aug. 6, 2013 /PRNewswire/ — NorthStar Realty Finance Corp. ( NRF ) (the “Company”) announced today that it has priced an underwritten public offering of 35 million shares of common stock at a public offering price of $9.60 per share. The Company has granted the underwriters a 30-day option to purchase up to 5.25 million additional shares of common stock.