Resolution or disaster for the housing crisis?
Current events drive the mortgage world like a race track governs a driver. They set the stage for change or for holding onto the status quo. As in any race however, it is the drivers who truly determine the result. The Republicans have a majority in Congress, but will that spell resolution or disaster for the housing industry?
A Cycle of Over-Reaching
The reason that many fear that this change in our Congress, which will occur in the New Year, will start the same problem that occurred the last time a majority was reached by the Democrats. That problem is going overboard. Try to change too much, too quickly and we will find ourselves back here in another couple of years. So, what needs to happen for this new Congress to stabilize housing?
Separate, but Together
The political word for this is bipartisanship. It basically means that both sides of Congress need to put aside other differences and take some serious action when it comes to the housing market. They need to consider amending the National Housing Act, dealing with poor assistance programs for seniors, and solving some of the technical funding issues government owned entities such as Fannie Mae and the FHA. If they can manage to do this, in part or in whole, Congress may yet be able to help put housing on the right track before the electoral process takes off next year.