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,…
By KURT DAVIS JR.
There are some simple life lessons in business: It is hard to be liked by all people and it is hard to be liked all the time.
Leaders at central banks and investment firms know this very well… today’s economic crisis will likely end with a simple reminder.
The Federal Reserve: Essential to Society or The Source of the Problem?
There are few, if any, central bankers who are not taking some public criticism today for raising rates.
For Jerome Powell, chairman of the Federal Reserve, and the other Fed members, their position cannot be enviable: stop inflation and maintain financial stability.
It is always a tough assignment to raise interest rates (the usual dose of…
By STEPHEN L. MILLER
The courtside theatrics of Phoenix Suns owner and sports thespian Mat Ishbia are more proof that the NBA is turning into professional soccer on the hardwood.
Soccer is notorious for players who practice the art of the flop: Flailing and falling as if in the throes of injury, only to magically recover once the whistle has been blown in their favor.
On Sunday night, however, the Jon Lovitz routine (“I’m an actor!”) made its way from the players to ownership.
With just over two minutes to play in the Suns’ eventual win, their guard Josh Okogie fell into the courtside stands while attempting to retrieve a loose ball.
The ball found itself in the hands of…
By BERTHA GARRETT
Across the United States, marijuana laws are being relaxed, and legal marijuana programs are being introduced. The ongoing legalization of marijuana has impacts on many areas of society, including the rental market, and it’s important for both landlords and tenants to be aware of the latest developments.
Impact of Marijuana Legalization on the Rental Market
Clearly, attitudes toward marijuana have changed a great deal in recent years. California has a great influence on the decision to legalize cannabis and led the way with its legalization, with many other states following the trend and others currently in the process of preparing their own plans to make marijuana and cannabis products more accessible.
When it comes to the rental…
By Scott Kimbler
Watch for housing sales in 2023 to follow the same pattern from a decade ago.
That’s the prediction of Ed Pinto, Director of the American Enterprise Institute’s Housing Center, during a recent data review. He and Assistant Director Tobias Peter used information from the final months of 2022 and into the first quarter of 2023 to preview the remainder of 2023 and perhaps even into 2024, given current market trends.
Pinto pointed out that Agency Purchase Volume for the final month of 2022 was down 45 percent from the same month in 2021 and 51 percent down from the same month in 2020.
“Based on Optimal Blue date,” Pinto said. “We expect purchase volume in early 2023…
By JARED WHITLEY
Despite Mat Ishbia’s repeated claims that his company, United Wholesale Mortgage, has never laid anyone off; the facts – and common sense – belie his statement, as UWM’s employee count is down 30 percent over the past two years.
“While my competitors are cutting investments and laying off thousands and thousands of people, we continue to invest in technology, take care of our people, and have never laid off a single team member in our 37-year history,” Ishbia said at a recent webcast townhall.
But, according to the company’s annual report filings with the Securities and Exchange Commission, UWM slashed its workforce by nearly a third – from a height of 8,600 in January 2021 down to…
By TOBIAS PETER
Last month, at the behest of the Federal Housing Finance Agency, Fannie Mae and Freddie Mac, the government-sponsored enterprises, announced new risk-based pricing guidelines that loosen mortgage credit for higher-risk loans. Since the Federal Housing Administration traditionally serves higher-risk borrowers, this move represented the latest salvo in a renewed battle for such borrowers.
As a response, FHA is rumored to announce today (2/22/2023) a 30 bps mortgage insurance premium cut that will expose taxpayers and not help prospective homebuyers.
The last time FHFA imposed credit loosening on the GSEs in 2014, FHA responded shortly thereafter in kind with a large 50 bps MIP cut. At the time, FHA predicted that this cut would lead to 250,000 new…
By SCOTT OLSON
Recently, Wells Fargo announced it was exiting the correspondent mortgage loan business, eliminating an important execution source for smaller independent mortgage banks that originate FHA, VA, and Fannie/Freddie loans but are not Ginnie Mae-approved issuers or Fannie/Freddie seller-servicers.
This development is only the latest in a persistent 10-year trend, documented in our latest IMB Report issued last October by the Community Home Lenders of America.
As large banks have exited the mortgage business, independent mortgage banks picked up the slack. IMBs now originate 90% of FHA and VA loans and issue 90% of Ginnie Mae mortgage-backed securities. When an IMB acts as a Ginnie Mae issuer, it not only services the loans, but it is also legally…
