Rep. Royce Advocates for More Private Capital in the Housing Market

WASHINGTON, D.C. – November 19, 2015 – (RealEstateRama) — U.S. Representative Ed Royce (R-Calif.) questioned U.S. Securities and Exchange (SEC) Chair Mary Jo White on the SEC’s actions related to risk-sharing by the GSEs during a House Financial Services Committee hearing entitled “Examining the SEC’s Agenda, Operations, and FY 2017 Budget Request.”

“I think that’d be helpful. I think it’s very clear, as the Federal Housing Finance Agency says in the end of the day, there’s a clear benefit in getting credit risk transfers to get more private capital back in here for this part of this equation. REITs can do this according to them, according to us, we certainly see the benefit to this. When you’re looking at a significant source of private capital like this, it just doesn’t make sense because of regulatory hurdles to prevent that capital from being deployed. We’d appreciate that assistance,” concluded Rep. Royce.

More…