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The Wall Street Journal’s report of FHA’s undisclosed stress test—which indicated that it could lose $115 billion—underscores the need to rethink the housing policy status quo. New AEI-sponsored research conducted by the University of Pennsylvania’s Joseph Gyourko suggests that a fundamental restructuring of federal housing policy can better help working-class households successfully achieve homeownership, while also mitigating taxpayer risk.

As America finally emerges from the housing crisis, this research raises important questions about how future crises can be prevented and how federal housing policy can be targeted more transparently toward the families it intends to help.

Presentation:
Joseph Gyourko, University of Pennsylvania

Discussants:
Edward Pinto, AEI
James Carr, Wells Fargo

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