Giving Compass' Take:

• Experts from the Urban Institute's Housing Finance Policy Center share the issues they will be watching in 2019.

• How can funders work to shape housing finance policy in 2019? Which of these issues is likely to significantly impact housing where you work? 

• Learn about liquidity crises in the mortgage market. 

Vice President Laurie Goodman: I am most worried about whether we’ll figure out how to increase the housing supply quickly enough to address the acute shortage that is causing affordability problems in too many places. Two of the more obvious solutions are increased use of manufactured housing and new building technologies, such as modular and panelized housing, both of which I will be watching closely.

And I agree that the change in direction at the Federal Housing Finance Agency (FHFA) could be the most important thing to happen to housing finance in 2019.

Vice President Alanna McCargo: I’ll be curious to watch how the various proposals and policies that are being introduced, both legislatively and administratively, will affect housing affordability in 2019.

Next year, the 2020 presidential campaign will be in full gear, and already this year, we have seen affordable housing as a spotlight issue.

Research Associate Karan Kaul: Next year will represent the first time a Trump appointee takes charge of the FHFA, thereby influencing the market activities of Fannie Mae and Freddie Mac. Conventional wisdom is that the new FHFA director will attempt to shrink the market footprint of Fannie and Freddie.

The new year could also be when the Federal Housing Administration (FHA) —which is becoming increasingly concerned about the risk profile of its book of business—could take actions to mitigate that risk. With nearly two-thirds of recent originations flowing through Fannie Mae, Freddie Mac, and the FHA, I am interested in how the market will react should all three shrink their footprint at the same time.

Read the full article about housing finance issues to watch by Sheryl Pardo at Urban Institute.