Current Initiatives and Reform of the Housing Finance System. (RE-ANNOUNCEMENT of PB85-126795-see notes field for explanation)

摘要

This paper reviews the current state of financial reform, with particular reference to the housing finance system, in the context of the history of problems of the financial system and previous reform efforts. There are a number of inefficiencies and inequities in the housing finance system generated largely by deposit - rate ceilings and portfolio limitations on depository intermediaries. Omnibus attempts at reform, although well - conceived, invariably fail due to political opposition. Deposit and deposit - substitute markets have evolved in such a way as to dilute the impact of rate ceilings and portfolio restrictions. Provisions for interest - bearing transaction accounts and new savings instruments have effectively eroded regulatory control. Mortgage markets have changed less than deposit markets. The alterations that have occurred have made mortgages more attractive as investments, broadened the base of housing finance, and linked mortgage markets closely with capital markets. All these developments pose significant problems for monetary policy. New instruments blur the definition and interpretation of monetary aggregates. Recently, regulatory authorities have recognized the changes occurring in deposit and mortgage markets. The authorization of automatic transfers, money market certificates, and variable - rate mortgages, as well as the liberalization of deposit ceilings represent a partial implementation of the omnibus packages of the past. The elements necessary for an efficient housing finance system that can adapt to a variety of economic conditions have been available. Current legislative and regulatory initiatives move toward capturing and combining those elements. What remains to be seen is the ultimate implementation of these initiatives and their effectiveness in addressing the problems with the existing housing finance system. A total of 52 footnotes are included.