But the slow recovery of the housing market and the economy, continued uncertainty surrounding the future of the GSEs and the regulatory environment for mortgage lending, the likely continued absence of a private-label market, and more cautious attitudes by lenders are all barriers to rapid normalization of the flow of mortgage credit.
Overhang of empty and foreclosed homes To date, policymakers have been focusing on refinancing creditworthy (but sometimes underwater) borrowers, on loan modifications, and on other ways to avert additional foreclosures. This work is obviously very important.