By KIMBERLEY HAAS
Democratic lawmakers introduced a bill this week that would restrict tax breaks for corporate investors that purchase large quantities of homes.
If passed, the Stop Predatory Investing Act would prohibit investors who acquire 50 or more single-family homes for rental purposes from deducting interest or depreciation on those properties.
U.S. Sen. Sherrod Brown (D-Ohio), chair of the Senate Banking, Housing, and Urban Affairs Committee, says investors funded by Wall Street buy up homes that could have been sold to first-time homebuyers. He claims they rent them out at higher rates, neglect repairs, and then threaten families with eviction.
“Our bill will help prevent corporate landlords from driving up local housing prices and put power back in the…
By NICOLE MURRAY
There have been 1.3 million cases where loss mitigation options have helped borrowers remain in their homes since the start of the Covid-19 pandemic, according to officials at the U.S. Department of Housing and Urban Development.
A few common tools available through these home retention programs include a loan modification, forbearance agreement, or repayment plan.
However, some of these resources that once were effective in avoiding foreclosures now result in little to no reductions in monthly mortgage payments due to spiking interest rates.
As a result, a new proposal is being offered by the Federal Housing Administration, so borrowers have a potentially more effective option to avoid foreclosure. This tool is called the Payment Supplement Partial Claim.…
By KIMBERLEY HAAS
The U.S. House of Representatives has passed the Middle-Class Borrower Protection Act which would reverse recent changes to fees charged by Fannie Mae and Freddie Mac.
Republicans have been fighting changes to the loan-level price adjustment matrix which were announced earlier this year and scheduled to go into effect on May 1. Rep. Warren Davidson, R-Ohio, who introduced the act, has repeatedly said that the new fee structure is “a socialist redistribution of wealth.”
“It’s a scheme created by the Federal Housing Finance Agency that forces financially responsible homebuyers with good credit to subsidize those with bad credit. Responsible action should never be penalized, and irresponsible action shouldn’t be subsidized. Under this rule, a majority of new…
A new independent office has been created for manufactured housing programs at the U.S. Department of Housing and Urban Development.
Employees at the Office of Manufactured Housing Programs will report to Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon, according to a press release.
The office was previously organized under the Office of Housing’s Office of Risk Management and Regulatory Affairs.
Support of manufactured housing is a part of the Biden-Harris Administration’s efforts to increase the overall supply of affordable housing.
“This organizational change represents a recognition of the critically important role that manufactured housing plays in our country’s housing market,” Gordon said.
During the last two years, HUD has supported the continued production of manufactured homes as…
By PATRICK LAVERY
The Federal Open Market Committee called a pause on their rate hikes Wednesday, electing to keep the target range for the federal funds rate unchanged at 5% to 5.25% while continuing to significantly reduce securities holdings.
It was not a complete victory lap for Federal Reserve Chairman Jerome Powell, who told reporters at a press conference that the FOMC overwhelmingly expects to raise interest rates “somewhat further” before the end of 2023.
The reason for the future uncertainty in interest rates continues to be inflation, which is still “well above” the Fed’s longer-run 2% goal, according to Powell. The Summary of Economic Projections released concurrently with Wednesday’s announcement kept that 2% target destined for 2025.
A survey…
By KIMBERLEY HAAS
Industry leaders are speculating about what officials at the Federal Reserve will do concerning rate increases during their meeting this week.
In May, Federal Reserve Chair Jerome Powell said they were prepared to raise rates again if economic conditions worsened, but hinted at a wait-and-see attitude regarding this month’s meeting. Policymakers may even skip raising rates after a smaller than expected rise in the Consumer Price Index, released on Tuesday.
CNN reporter Matt Egan said the CPI report gives officials the cover they need to hold off on increasing rates this month.
“Investors are becoming increasingly confident that the Fed is going to keep interest rates steady after … 10 consecutive interest rate hikes. The Fed has…
The Federal Open Market Committee’s June meeting is just around the corner, and while most experts think the Fed will pause its rate increases, others are wary.
Most analysts expect the Central Bank not to introduce another rate hike at the meeting, scheduled for June 13-14, according to a poll of economists from Reuters. More than 90% of those polled, 78 of 86 total, don’t think another hike is on the horizon. These analysts think the Fed will pause to evaluate the impact of the 500 bps increases they’ve already instituted.
“[Fed Chairman Jerome Powell] expressed his bias in favor of remaining on hold in June … he’s going to stick with that as it gives them an additional month…
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 KIMBERLEY HAAS
Changes to fees for loans backed by Fannie Mae and Freddie Mac continue to be a hot topic as Republicans push to repeal them.
The changes to the loan-level price adjustment matrix by officials at the Federal Housing Finance Agency went into effect on May 1 and critics are opposed to the notion that homebuyers with good credit scores and substantial down payments will pay more so fees for borrowers limited by income or wealth can be reduced.
Rep. Warren Davidson, R-Ohio, who introduced the Middle Class Borrower Protection Act on Monday, again attacked the policy on Wednesday. He refers to it as “a socialist redistribution of wealth.” Biden’s mortgage fee is a socialist redistribution of wealth.…
By KIMBERLEY HAAS
The president and CEO of the Mortgage Bankers Association said they are pushing for clarity and common sense as he criticized policymakers this week during his remarks at the Secondary and Capital Markets Conference and Expo in New York City.
Bob Broeksmit said policymakers plan to pile on more enforcement and red tape at a time when MBA member businesses are struggling.
“There seems to be a sense, at the highest levels of government, that the mortgage industry needs to be reined in,” Broeksmit said, according to his prepared remarks.
Broeksmit referred to the recent failures of Silicon Valley Bank, Signature Bank, and First Republic Bank saying some policymakers are now pushing for new rules that could…
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