How Will Housing Reform Plan Affect Part-Time Workers?

Traditional finance systems limited mortgage availability for gig workers, but planned financial reform may open up doors for those with an unconventional yet reliable source of income. Still, options will be limited compared to those with full-time positions and salaries.

Even part-time workers need full-time living spaces.

This month the U.S. Department of the Treasury released a plan to reform the American housing finance system. The Treasury Housing Reform Plan includes nearly 50 recommended legislative and administrative reforms to define a more limited government role within the housing finance system. The reforms are also aimed at preventing taxpayers from catching the bill for future bailouts and promoting increased competition in the housing finance system.

The word from the White House is that executing this proposed plan is “the last unfinished business” from the government takeover of mortgage giants Fannie Mae and Freddie Mac in 2008. Fannie and Freddie don’t actually issue loans themselves; they buy loans from lenders to be packaged into securities that are sold to investors. They also guarantee to return the money if the loan defaults. There are representations and warrants that the lender attests to, such as fraud or loan info integrity, to get their money back so they can lend again. They get matched up with financial entities (such as hedge funds) that wouldn’t be active in home loans without Fannie and Freddie’s help.

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