By CHRIS BARSTEIN
Homeownership: the American Dream. For so many adults, our homes not only fulfill the dream, they also are our most significant single purchase and our greatest investment. They’re where we build lives, families, and memories.
Then, it happens. We age and, almost without warning, that dream starts to become a burden. This time of year, as winter sets in over much of the country, many older homeowners dread snow removal and heating bills. Regular upkeep and repairs get in the way of quality time and bigger projects are an expense that could be spent in other ways. What to do next can seem an overwhelming proposition.
In an ideal world, retirement-age adults have a plan for where…
By PATRICK LAVERY
Seven weeks ago, the 2023 slate of policy meetings for the Federal Open Market Committee concluded with members voting to leave the key interest rate unchanged for a third straight time. However, anyone hoping that 2024 will begin with some movement in a downward direction is likely to be disappointed this week.
Despite a seemingly positive economic outlook that has the stock market soaring to record highs, the experts seem to agree that there will be no change made when Federal Reserve Board Chairman Jerome Powell emerges from the FOMC meeting on Wednesday.
The stability, so to speak, of the Fed’s policy interest rate has been mirrored somewhat in the housing market recently. According to Freddie Mac,…
By EDWARD PINTO
On December 15, HUD released its annual Point-In-Time (PIT) homeless and housing inventory counts (HIC) conducted in January 2023. The key finding was that homelessness reached a record high as the 2023 annual count increased 12% and 18% respectively from 2022 and 2017.
The average rate of homelessness per 1,000 population in 2023 was 20. The PIT is calculated for the 381 local and state Continuums of Care (CoC), which HUD uses to track homelessness.
The hundred-plus page report had lots of data along with a handful of anecdotal references to burgeoning housing purchase and rental costs. However, it contained precious little insight as to the steps needed to address our burgeoning homeless problem.
Conspicuous in its…
By DAVE HEISTEIN
Dealing with homeowner tax deductions can seem tough, but it’s key to making the most of your home financially.
In this article, we’ll make taxes easier for you to understand. From breaking down various tax deductions to highlighting tax considerations for home improvements, we’re here to simplify these complex topics.
Understanding Homeowner Tax Deductions
As a homeowner, you’re entitled to several tax deductions that can help you save money. Let’s break down five key tax deductions. Mortgage interest deduction: This allows you to deduct the interest paid on mortgage debt up to $750,000 ($375,000 if filing separately). To claim this, you need to itemize your deductions on Schedule A (Form 1040). It’s important to compare your itemized…
By DESMOND LACHMAN
Rudi Dornbusch, the late MIT economist, famously observed that economic and financial crises take longer to arrive than you can possibly imagine, but when they do come, they happen faster than you can possibly imagine.
Next year, Mr. Dornbusch’s warning could again prove to be prophetic as far as the commercial real estate sector and the regional banks are concerned. To be sure, four years on since 2020’s Covid pandemic upended the commercial property market, we have yet to have a full-blown financial crisis. However, next year could be the year when the commercial real estate market and the regional banks unravel at a faster pace than we thought possible.
At the heart of the commercial property…
By SCOTT OLSON
This week, the Consumer Financial Protection Bureau fined Bank of America $12 million for reporting false mortgage data. CFPB’s Press Release on the action stated that BofA “Loan officers routinely falsified forms about mortgage applicants.”
In response to this action, the Community Home Lenders of America issued a statement renewing its longstanding call for all mortgage loan originators to be licensed. Despite the fact that Section 1402(a)(2) of the Dodd-Frank statute requires that all mortgage loan originators must be “qualified,” the CFPB still does not require loan originators at banks to meet any of the SAFE Act requirements that apply to all non-bank mortgage loan originators.
Why is this relevant to the BofA action? The CFPB press…
BY JARED WHITLEY
To steal from Detroit rapper Eminem, “Will the real Suzanne Okun please stand up? Please stand up? Please stand up?”
Because she’s strangely hard to find.
According to a 2019 biography posted in the industry publication Scotsman Guide, Okun was “a successful executive with more than 25 years of success in the financial-marketing and mortgage industries … [with] a proven record of increasing volume while improving efficiencies and encouraging interaction.”
But, interestingly, no photo of her appears with her biography, no relevant social media accounts were publicly available, and several phone numbers associated with her were either wrong or no longer in service.
While going off the grid is unusual, what industry observers find even more odd…
By TOBIAS PETER
As rising home prices continue to undermine the American Dream of homeownership for hard-working Americans, Congress is considering a bipartisan bill modeled after the successful VA home loan program, to help first responders and teachers buy a home. However, as long as there is a housing shortage, first-time homebuyer assistance programs, such as the Homes for Every Local Protector, Educator, and Responder (HELPER) Act of 2023 are part of the problem, not the solution.
The HELPER Act, with over 100 cosponsors in the House and Senate, aims to exempt potential buyers from putting any money down or purchasing mortgage insurance, which is typically required for homebuyers putting less than 20% on a down payment. In addition, the…
By JARED WHITLEY
Mat Ishbia is building his dream home in Michigan, and he’s tearing down five other homes to do it. It’s a display of extravagance that has housing advocates and social justice activists looking askance.
At a time when Michigan is expected to lose thousands of affordable housing units over the next few years, particularly in the hard-hit Detroit area, the United Wholesale Mortgage CEO is building a 60,000-square-foot mansion in the Motor City suburb of Bloomfield Township. To build his 14-acre estate, Ishbia is tearing down his current 22,000-square-foot house, which is just eight years old, as well as five neighboring homes.
Once completed, the Ishbia compound will include a trampoline park, reflecting pool, statues, tennis court,…
By Taylor Stork, President CHLA and EVP, COO Developer’s Mortgage Company and Kelly Welch, Executive Vice President, Equity Resources, Inc.
When a consumer goes into the market to obtain a mortgage loan, they enjoy consumer protections that are arguably more extensive and specific than any other financial product.
A few examples: TRID requirements for disclosures which hold lenders to early fee estimates, RESPA prohibitions against charging for services not provided, and LO Comp prohibitions on loan originators steering loans or varying their fee based on how much they think the borrower would pay.
The same is true for the servicing of mortgage loans. Servicers must follow detailed rules, and for the two-thirds of loans that are “federal agency loans” (FHA,…
