A boost to the housing market has bi-partisan support, according to a Wall Street investment banking economist. He also noted that it has been suggested a Republican could be Obama’s choice to head the Federal Housing Finance Agency.
The chief U.S. fixed-income economist at Morgan Stanley, David Greenlaw, said in a CNBC television interview that cross-party dynamics indicate both sides of the isle believe support for the housing market is needed to overcome the ailing economy. He said there are a few proposals being considered that could overcome the gridlock in Washington.
One possibility is the sale of bulk properties from Fannie Mae and Freddie Mac to use as rental properties.
Enhancing the Home Affordable Modification Program is also an area that could advance in the current political environment, while an expansion of HARP 2.0 is a further possibility.
Greenlaw cited statements from Berkley Professor Brad DeLong and left-leaning Washington Post reporter Ezra Kline that suggest Republican Glenn Hubbard of the George W. Bush administration could be Obama’s choice for FHFA director.
