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Economists calculate that the decline in home prices has cost American homeowners approximately $7 trillion in home equity. Compounding this problem is the fact that the inventory of homes available for sale remains high and there is potential for a significant volume of “shadow inventory” to hit the market. Intervention is necessary to support the fragile recovery in the housing market and to prevent further declines in home values. What steps must policy makers take to prevent the loss...

Opening today’s paper to more reports about the apparent processing problems involving foreclosures, I was struck by the near total absence of any discussion concerning ways to constructively address this dilemma. Instead of framing the discussions in the useful context of “root cause” and “solutions”, the dialog has too often been cast in terms of “victims” and “villains”....

As a kid, I can remember riding through a stretch of desolate Texas highways where one large sign ominously warned: Last Gasoline Station for 200 Miles Exit Now. If you’re an at-risk borrower and your options are few, now is the time for you to exit – this latest effort by the FHA could be your last chance....

Traditionally, the PMIs have insured the safest of the low to moderate-income loans, leaving the more credit-challenged borrowers and riskier loans for FHA to insure. After all, they had the flexibility to adapt to the market and set their pricing. Circumstances in today’s mortgage market may have a turned that paradigm in its ear, but that’s okay—this new and bold partnership could also determine things like which entity bears which portion given a particular borrower’s risk profile in addition to other risk factors....

In January of this year, both Joe Murin and I were asked by HUD Secretary Donovan to remain as Ginnie Mae president and FHA Commissioner respectively to help the new Administration deal with the on-going housing crisis. We both were privileged to be asked and were honored to continue serving in the Obama Administration for several more months. ...