The housing market won’t trend up significantly until it hits bottom, the chairman of the Mortgage Bankers Association, Michael Berman, told CNBC Monday, and two changes need to take place before that happens.
What is needed is clarity about the foreclosure process and the role of Fannie Mae and Freddie Mac , said Berman, speaking from the association’s 97th annual meeting in Atlanta. He is in favor of limited government support of the housing market.
“We need some safety net through a government-guaranteed security that can provide that stability, both liquidity to the market in general, and if people want to get a 30-year mortgage, they can get it,” he added. “But also it helps to stabilize rates, because there’s not credit risk to the bond investors.”