Secretary of Housing and Urban Development (HUD) Julian Castro said in an interview with Bloomberg TV  that for many responsible Americans it is “too difficult” to get a home loan today. Castro reminded viewers with a smile that Ben Bernanke couldn’t get a home loan refi done, due to too strict lending guidelines.

The HUD Secretary was pleased to say that the FHA Title II mortgage loan program was back in the black and on a good track.

Castro also said that reform of the Government Sponsored Enterprises (GSEs) remains a top priority for the Obama Administration’s last two years.

The reforms should be part of an overhaul of the nation’s housing finance system, Castro said. 

Castro pointed out that their is bi-partisan support for legislation (S. 1217) introduced by Senate Banking Committee Chairman Tim Johnson (D-SD) and Ranking Member Mike Crapo (R-ID) which would reform the national housing finance market. It would eventually eliminate mortgage giants Fannie Mae and Freddie Mac.

Castro said, “This could be, I believe, a good victory either in the lame-duck session or, more realistically, perhaps in the next term of Congress where there is bipartisan support for housing finance reform, for doing away with Fannie and Freddie as we’ve known them, creating a backstop.”

While both national associations have favored reforms of the GSEs in a way that could be good for the industry’s home sellers and consumers, the Manufactured Housing Association for Regulatory Reform (MHARR) rapidly issued a release praising the Castro/Administration initiative.

MHARR’s released called it “good news for the manufactured housing industry, insofar as S. 1217 incorporates specific model manufactured housing (and chattel financing) equal access and non-discrimination language developed and advanced by MHARR, that was ultimately included in the bi-partisan bill on March 16, 2014 and approved by the Senate Banking Committee on May 15, 2014.”

MHARR elaborated, saying, “…regardless of what happens to S. 1217, the MHARR model equal access and non-discrimination language provides a basic template that the industry can and must include in any housing or housing finance legislation introduced in Congress going forward.”

The full MHARR release is here. MHProNews will continue to track developments of this story from all angles. ##

(Castro photo credit: BloombergTV/BusinessWeek)