By Guest Columnist RAY CHRISTMAN, retired CEO of the FHLBank of Atlanta who
currently is involved in a variety of housing/banking-related consulting and civic activities, including the Peachtree Corridor Partnership, the ULI Terwilliger Center for Workforce Housing, and the Livable Communities Coalition.
While there are reasons to be optimistic that an economic recovery is beginning to take hold, both locally and nationally, the housing industry remains mired in a deep depression.
Despite the conventional wisdom that housing will rebound ahead of other sectors, it’s possible that the industry’s comeback will be protracted and anemic and, indeed, will be a drag on the overall recovery.
Moreover, it’s a sure bet that as the economy stabilizes, the housing industry – and the mortgage financing system that supports it – will function much differently than they have in the recent past.
It has become painfully obvious that the problems facing the housing and banking systems are deeply intertwined. And the changes affecting these symbiotic sectors aren’t merely cyclical, but are structural in nature, and will have long-lasting effects.