In this paper, I endeavor to show that continuing U.S. government involvement in the housing-finance system will inevitably involve serious losses for taxpayers and that the U.S. housing finance system could function well without GSEs or any other form of government financial support simply by ensuring that only good quality mortgages are allowed to enter the securitization system. 

Panelists will review the characteristics of the Danish system that have helped Denmark survive financial crises for over two hundred years and consider whether any of the elements of the Danish system can be useful in the United States.

Regulatory reforms aimed at preventing future housing bubbles should be crafted with caution.

Panel discussion on what kinds of financial systems, banking, mortgage securitization, central banking, and related economic effects can we expect in the post-bubble world and if we find something new or just business as usual.

For any housing finance reform plan to be credible, it must do much more than wind down the GSEs. Because of the Dodd-Frank Act a number of formidable legal obstacles now exist that must be cleared away before a private securitization market will come back. If the administration is serious, its plan must address all these issues.

The authors of the study will present their findings about the effects of innovative mortgage products.

In the latest AEI Financial Services Outlook, AEI scholar Peter Wallison, who served as a member of the Financial Crisis Inquiry Commission, explains that we are beginning to see the outlines of the housing finance system envisaged by the new Dodd-Frank Act (DFA).