WASHINGTON — A panel of financial regulators and housing financeexecutives expressed strong confidence the 30-year, fixed-ratemortgage will remain a key element of the U.S. housing financemarket.

The panel addressed bank and credit union executives attendingthe Mortgage Bankers Association meeting on Monday at theWashington Convention Center.

Also from MBA:
VideoCUTs: Warren Live atMBA
WarrenSays Prep for New Boom
Cordray Defends QM Regs
FreddieMac CEO Says Save Infrastructure
FHFAPledges Six Months of Notice

The panel comprised Carol Galante, federal housing commissionerat the Department of Housing and Urban Development; Michael Heid,president of Wells Fargo Home Mortgage; William McCue, presidentand owner of McCue Mortgage, a housing finance company in NewBritain, Conn.; and Thomas Wind, executive vice president atEverbank in Jacksonville, Fla.

Panel members based their opinions on the observations thatlong-term, fixed-rate loans were the vehicle that not only remainthe most popular with the majority of consumers, but are among theonly loans which will meet new housing finance regulations.

“I can't even imagine the 30-year, fixed-rate loan going away,”Heid said. “It plays that central a role and there is nothing onhand to replace it.”

McCue added the prediction that, eventually, the 30-year loanwill become the only housing finance loan which is readilyavailable.

“We also cannot underestimate the value of certainty forconsumers,” McCue added. “Even if no one really plans to remain intheir homes for 30 years, consumers like having a fixed mortgagepayment they can plan around and budget around.”

Galante acknowledged that housing finance regulations favor thelonger-term loans, noting that they provide the degrees ofaffordability that the U.S. has long tried to make sure remainedincluded in its housing market.