$3.3 Million In Funding Available To Combat COVID-19 Housing Discrimination

By KIMBERLEY HAAS Officials at the U.S. Department of Housing and Urban Development are making an additional $3,285,353 in American Rescue Plan funding available to help fight housing discrimination related to the COVID-19 pandemic. The announcement was made on Tuesday and according to a press release, this is the third round of American Rescue Plan funding that targets COVID-19 related discrimination. About $16.1 million in funding has been awarded to 62 HUD Fair Housing Initiatives Program agencies to address the impact the pandemic has had on communities of color, low-income communities, and other vulnerable populations. Demetria L. McCain, HUD’s Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity, said in a statement that the COVID-19 pandemic continues to reveal…

Disability Discrimination Alleged In Hawaii

By KIMBERLEY HAAS Officials at the U.S. Department of Justice are claiming that condominiums and apartment complexes in Hawaii were built without accessible features required by the Fair Housing Act. The federal act prohibits discrimination in housing on the basis of disability, race, color, religion, sex, familial status, and national origin. An amended complaint was filed Monday at the U.S. District Court for the District of Hawaii. Two of the five properties cited were built with financial assistance from the federal government’s Low-Income Housing Tax Credit program. They are Kahului Town Terrace, in Kahului, Maui, and Palehua Terrace, in Kapolei, Oahu.  The other three properties are Napilihau Villages and Napili Villas, in Lahaina, Maui, as well as Wailea Fairway Villas,…

CHLA Says FHA Should Cut Premiums, End Life Of Loan

In its budget proposal this week, the Biden Administration allotted a 34% budget increase for the Department of Housing and Urban Development of $11.6 billion over the fiscal year of 2022. This proposed budget includes $32 billion for the Housing Choice Voucher Program and almost $2 billion for the HOME Investment Partnership, aimed at affordable housing strategies. The industry has so far applauded the budget for its investments in housing as affordability dwindles and many Americans struggle to find housing within their budget. “A president’s budget is a wish list of policy goals and ambitions,” Shannon McGahn, the National Association of Realtor’s chief advocacy officer, said. “Many changes will be made to this plan, but it is good news that…

Biden-Harris Tackle Equity In Lending And Appraisals

By KIMBERLEY HAAS Vice President Kamala Harris joined officials from the U.S. Department of Housing and Urban Development on Wednesday to announce the delivery of a plan designed to dismantle racial bias in the home lending and appraisal process. The Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) Action Plan submitted to President Joe Biden will, when enacted, represent the most wide-ranging set of reforms ever put forward to advance equity in the home appraisal process, according to a press release. During her speech, Harris described how a home ensures future financial security and peace of mind for families. “Imagine a young couple that saves enough money to put a down payment on a home. The day they…

Race-Based Lending: The Right Way to Promote Social Justice?

By JARED WHITLEY The Neighborhood Assistance Corporation of America (NACA) has announced a lending program for minority-owned businesses it calls “Economic Justice Loans,” with the stated goal of helping historically underserved populations build generational wealth. The political-progressive organization’s action raises the question of whether people of color are still being denied access to credit in 2022. “This lending model provides the foundation for hundreds of millions of dollars in additional lending,” NACA’s founder and CEO Bruce Marks said in a press release. “We have learned that if you build it, they will come. NACA’s Best in America Mortgage targeting underserved communities started with a few million dollars in commitments and now has over $20 billion. We expect the same outcome with extraordinary terms…

Analysts React To Fed Rate Hike

The Federal Reserve raised interest rates for the first time since 2018 on Wednesday in an effort to combat rising inflation, and economists have mixed feelings about its impact on the housing market. The Consumer Price Index rose 0.8% in February, up 7.9% over the last year, to its highest rate in 40 years. As Americans spend more on less, the impact is becoming apparent. Retail sales rose 0.3% in February, a slowdown in the pace of spending that suggested inflation was taking its toll on American consumers. But while rising prices for gas and groceries may burden American households, it’s things like health insurance and housing that are the “silent killers,” according to Justin Wolfers, University of Michigan professor…

Fed’s Bowman Suggests Half-Point Rate Hike In March

Federal Reserve Governor Michelle Bowman said the Fed could hike rates by half a percentage point in March, suggesting the move is necessary to fight inflation. Inflation is currently at a four-decade high, with the Consumer Price Index up 7.5% year-over-year in January 2022. “The nation is dealing with inflation at its highest level in decades, much of it driven by corporate greed and anticompetitive behavior, and the federal government must use every tool available to prevent price gouging and reduce prices for Americans,” Massachusetts Senator Elizabeth Warren wrote in a letter to the Department of Justice, asking it to take action against companies violating antitrust laws to hike prices for consumers.  Bowman said Monday that inflation is “much too high” and suggested…

Scott Olson: Standing Up For Independent Mortgage Bankers In 2022 And Beyond

By KIMBERLEY HAAS The executive director of Community Home Lenders Association is working to educate policymakers in Washington, D.C., while articulating the perspective of members in a growing portion of the market: Independent Mortgage Bankers. Scott Olson has over 20 years of experience on Capitol Hill. For 15 years, he served on the House Financial Services Committee, according to his biography. On Thursday, Olson told The Mortgage Note they focus on articulating the perspective of IMBs, which don’t have a huge loan volume. “But collectively, we are pretty mighty because there’s a lot of us,” Olson said. Olson said banks can shift gears to make money on different types of loans as they look to make the most profit out…

CHLA Asks FHFA To Delay April Fee Hikes

The Community Home Lenders Association (CHLA) sent a letter to FHFA Acting Director Sandra Thompson asking for adjustments to upcoming Fannie Mae and Freddie Mac fee increases. On January 5, the Federal Housing Finance Agency (FHFA) announced “targeted increases” on upfront fees for certain high balance loans and second home loans, to go into effect April 1. Its stated goal is to “minimize market and pipeline disruption.” “These targeted pricing changes will allow the Enterprises to better achieve their mission of facilitating equitable and sustainable access to homeownership, while improving their regulatory capital position over time,” Thompson said in a press release. “Today’s action represents another step FHFA is taking to strengthen the Enterprises’ safety and soundness and to ensure…

Alanna McCargo Sworn In As Ginnie Mae President

Alanna McCargo has officially been sworn in as the 18th president of Ginnie Mae, becoming the first Senate-confirmed president in five years and the first woman to hold the position. The position has remained empty since 2017 when Obama-appointed president Toed Tozer stepped down. The interim presidents who followed him, Michael Bright and Maren Kasper, both stepped down to take other positions in the private sector. McCargo was nominated in September of 2021 and confirmed by the Senate in December 2021. “It is an honor to lead Ginnie Mae through its next phase of transformation, ensuring our MBS remains a secure, nimble, and reliable vehicle to support the U.S. mortgage market and continues to make affordable homeownership and rental housing…