Written Testimony of David K. Min Before the United States House of Representatives Committee on Financial Services, 'Beyond GSEs: Examples of Successful Housing Finance Models Without Explicit Government Guarantees'
University of California, Irvine School of Law; University of California, Irvine School of Law; University of California, Irvine School of Law
June 12, 2013
UC Irvine School of Law Research Paper No. 2013-115
Written testimony on the topic of alternative housing finance models. This paper makes the following seven points: 1. Government guarantees are universal. 2. European covered bonds are best thought of as government-sponsored obligations. 3. Government guarantees are prevalent because they address key market failures in housing finance. 4. There is no perfect housing finance model. 5. The common thread in global housing bubbles was financial deregulation. 6. Explicit, ex ante guarantees are preferable to implicit, ex post guarantees. 7. Given U.S. political priorities, improving the status quo may be preferable to importing other models.
Number of Pages in PDF File: 23
Date posted: June 18, 2013 ; Last revised: May 19, 2015