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Posts Tagged ‘Democrats’

TINs and what POTUS Obama’s immigration executive action means for Lenders, manufactured housing

November 24th, 2014 Comments off

julian-castro-housing-urban-development-hud-secretary-posted-daily-business-news-mhpronews-com-Manufactured housing (MH) retail, community and lending professionals know the Hispanic market has long been a strong and growing target audience for the industry. So when National Mortgage News (NMN) gives their 411 on what the president’s controversial executive action last Thursday might mean for housing lenders, MHProNews listened.

NMN‘s Evan Nemeroff stated, “…giving roughly 5 million immigrants at least temporary relief from deportation could conceivably ease lenders’ and borrowers’ qualms about mortgages to undocumented workers who qualify with individual taxpayer identification numbers, or TINs.

Nemoff points to HUD’s recently appointed Secretary Julian Castro – whose clear ties to Hispanics can’t be missed – saying the president’s Thursday announcement is “an important step toward fixing our broken immigration system.”

Even before this immigration reform was announced, nearly 11 million undocumented immigrants were eligible to qualify for mortgages using an individual taxpayer identification number,” Nemoff said, “which is assigned to them by the Internal Revenue Service for tax-filing purposes. However, very few lenders offered this product.

Citibank and Venta Financial Group are among housing lenders who have made loans using TINs. Some in MH finance have done so too.

Republican leaders have vowed to battle the president’s immigration move as a naked power grab, since there is no legislation behind it, as was the case with allegedly similar orders by Presidents Reagan and Bush 41.

The announcements and arguments by pro-Obama Administration sources fits the pattern of seeking to carve out supporters for their move, by offering enticements: in this case, the possible promise of more home loans and sales to Latinos.

Censure by Republicans – who control both House and Senate in 2015 – budget carve outs, holding up the Obama Administration’s judicial and other appointments are among the tools mentioned to foil the hotly questioned executive immigration action.

With the president no longer facing re-election, low poll numbers for him, anemic support among the population at large – even below 50% among Hispanics for the announced amnesty for 5 million illegals in the U.S. – seems of little concern to the president and many top Democrats.

Nor does it seem to be troubling to those favoring the amnesty move that the president himself repeatedly argued since 2009 that he doesn’t posses the authority under the Constitution he now claims to have.  Such statements are captured in the video shown above.

Time will tell if housing lenders – including those in MH – will bite on using TINs more to make more loans for such currently deemed ‘illegal immigrants,’ but Bloomberg and NMN suggest the perceived risks are now lower for those opting to do so. ##

HUD, finance, GSE reform and FHA related story on Julian Castro, linked here.

(Photo Credit: Julian Castro, HUD)

 

Troubling Income-gap reports; do they spell growth potential for manufactured housing?

November 16th, 2014 Comments off

income-inequality-graphic-daily-business-news-mhpronews-com-350x258lightblue-The New York Times reports that the super rich are pulling away from the millionaires in America. Federal Reserve and other policies which prop up the stock markets, benefit the top fraction of 1%, which has lead to high demand for luxury goods. Meanwhile the HeraldTribune says the United Way in Florida issued a report that 30% of the population in their state make more than poverty level, but barely enough to pay for the necessities or life, including housing.

“In Manatee County, for example, the United Way report estimates that a family of four with an infant and preschool-age child needs $1,117 a month for child care, $995 a month for housing, $699 a month for transportation, $531 a month for food, $426 a month for health care, $215 a month for taxes and $398 a month for miscellaneous expenses. A family would have to earn $4,382 a month to cover all these costs, an income level that is more than double the official poverty cutoff.”

Recent reports by the Government Accounting Office (GAO) and a prior one from Fannie Mae reflect the fact that monthly payments on manufactured housing are about 1/3 lower than the $995 monthly the United Way budgeted for housing. When pre-owned manufactured homes are considered, the monthly costs in many markets may be even lower.

While President Obama and some Democrats campaigned on income inequality as an issue this year, the Pew Research center quoted Florida Senator Marco Rubio talking about creating “a new opportunity society in America” as a conservative approach to addressing persistent poverty.

Income inequality has grown for many years, under the previous and current administrations. But the irony of doing fundraisers with the wealthy, while doing stump speeches on income inequality which has grown in the last 6 years is not to be missed; nor should the chance to tap the growing need for quality affordable housing the manufactured homes represents. ##

Related Stories – GAO report.

CNBC report with Fannie Mae graphic/monthly costs for housing comparisons

Download Pew Research report.

(Image Credit: MHProNews)

The Hill-Bankers Sigh-but it’s not the “Iced Tea Party”

May 26th, 2014 Comments off

While the Tea Party can trace its origins to anger over the Wall Street bailouts in 2008, the sharp edge for that movement of the Republican Party to the right has been dulled at the polls recently, much to the relief of the banking industry, which sees the shift as a better chance for the establishment Republicans to retake control of the Senate. Representative Mike Simpson (R-ID) was taken to task for supporting the bailouts, but handily bested his conservative opponent, while Senate Minority Leader Mitch McConnell (R-KY) did the same to primary challenger Matt Bevin who highlighted the Wall Street rescue (for which McConnell voted) as a central theme of his platform.

The financial industry was not pleased with the conservative-led shutdown of the government nor the skirmish over the debt limit, preferring to not rock the boat of a shaky economy, but at the same time knows its bread is not best buttered by the Democrats either. While recent elections have seen conservative challengers win primaries over centrist Republicans and then lose to Democrats in the general elections, according to thehill.com, that is less likely to happen with more mainstream candidates on the ballot. Sen. Sherrod Brown (D-OH) is a frequent critic of Wall Street, and while he is not up for re-election until 2018, he is the heir apparent to head the Senate Banking Committee when Sen. Tim Johnson (D-SD) retires, making a Republican-controlled Senate more desirable for the banking industry.

Francis Creighton, head of government affairs for the Financial Services Roundtable, tells MHProNews, “As an industry, we have to look at every member of Congress independently, we can’t just assume that there’s going to be one party for us and one party against us.” While the economy remains in an iffy gear, Wall Street is prepared for more criticism on the presidential campaign trail, hoping a viable Republican contender will step forward and pull the debate to the right.

MHProNews publisher L. A. ‘Tony’ Kovach suggests that any who think the the GOP’s right wing is dead has misread the tea leaves. “It’s not the ‘Ice Tea Party,’” Kovach quipped. “That movement is maturing and is backing more candidates who can win in the general elections. It’s still the hot Tea Party for millions who see endless scandals, a weak economy and foreign policy reversals as goads to do more to fix DC politics, not less.” ##

(Image credit: Tea Party)

Senate Panel to Vote on Johnson-Crapo Measure

May 13th, 2014 Comments off

Following a story MHProNews posted April 29, 2014 regarding postponement of the mark up of the housing finance reform bill by the Senate Banking Committee, nationalmortgagenews.com reports the bipartisan legislation by Senators Tim Johnson (D-SD) and Mike Crapo (R-ID) will be voted on by the committee on Thursday, May 15. The measure is expected to be voted out of committee, but it does not have enough momentum for a full chamber floor vote this year. Six Democrats decided not to support the bill, which was to include components favorable to the manufactured housing industry. ##

(Image credit: mbaa.org)

Measure Favoring Manufactured Home Lending May be Stalled

April 22nd, 2014 Comments off

While the Senate Banking Committee is scheduled to hold a markup of the Housing Finance Reform and Taxpayer Protection Act of 2014, which includes securitization for manufactured home loans through a new agency, there is concern over lack of support from liberal Democrats who want more affordable housing provisions. Some committee members have suggested a vote to move it out of committee be postponed until more support is forthcoming, MHProNews.com has learned. Additionally, the Manufactured Housing Institute (MHI)’s reports smaller lending institutions say the Johnson-Crapo bill favors the larger banks. ##

(Image credit: mbaa.org1–Senate Banking Committee)

Taxes Rise on Manufactured and Modular Homes

June 14th, 2013 Comments off

MHProNews has learned from charlotteobserver the North Carolina state senate has approved a tax reform plan on second reading with the third and final reading—and likely approval– set for Tue., June 18. The Republican-dominated senate bill includes a tax hike for factory-built homes. Under the new measure the sales tax on manufactured homes would rise from 2 percent with a $300 cap to 4.75 percent with no cap. For modular homes the increase would go from 2.5 percent to 4.75%. Democrats contend this will hurt small businesses. The measure will move to the House for reconciliation with its bill after the final vote.

(Photo credit: thetimesnews–refurbished manufactured home in Burlington, NC)

Overhaul Fannie and Freddie? Why?

March 7th, 2013 Comments off

As washingtonpost informs MHProNews, while Fannie Mae and Freddie Mac have been vilified for allegedly causing the financial meltdown, for being bailed out by the government to the tune of $131 billion, and for taking business from private firms, neither the Democrats nor the Republicans are actively doing much to change the GSE landscape. While they remain for-profit entities, they are backed by the government, and despite the criticism, they were the only home finance game in town in 2009 when banks were not interested in making home loans. As Neal Irwin says, the housing collapse would have been much worse had Fannie and Freddie not been around. The reason the overhaul has not happened is because there are too many vested interests in keeping the system as it is. Accounting for 90 percent of U. S. mortgages keeps originators, servicers, lenders, banks, and builders pretty busy, not to mention the contributions from the GSEs to political campaigns.

(Image credit: Federal Housing Administration)

Will the Senate Alter Dodd-Frank and CFPB Regulations?

December 3rd, 2012 Comments off

American Banker reports the Senate Banking Committee, two years after implementing Dodd-Frank, will likely review the impact of the regulations on the marketplace to determine what may need to be altered. The agenda has not been set yet for the coming year because Committee Chairman Tim Johnson (D-S.D.) wants to consult with the new committee members before releasing a detailed agenda. Now that elections are over, Democrats may be more willing to accept that changes need to be made, and Republican rhetoric has backed away from total repeal of Dodd-Frank to making it more productive. Jaret Seiberg at Guggenheim Securities says, “The real focus is going to be the shift from looking at why banks did bad things to how you can get more credit flowing to the economy. That shift in focus is going to open the door for making modifications to Dodd-Frank.” Passage of any legislation, whether it’s changing the Volcker rule that bans proprietary trading, or the structure of the Consumer Financial Protection Bureau (CFPB), will depend on the committee members relationship and that of the entire Senate. As MHProNews has learned, Amy Friend of Promontory Group, and former chief counsel to the Senate Banking Committee, says lawmakers likely want to see how the CFPB’s qualified mortgage rule, due in January, and the interagency risk retention plan affect the market. “Those will be extremely important in terms of trying to provide some certainty to the private sector,” she says.

(Image credit: Senate.Gov)

Deregulation would Spur the Economy

November 21st, 2012 Comments off

Forbes reports that if the Democrats truly want to restore the economy to the prosperity enjoyed during the Clinton years and avoid the “fiscal cliff,” the administration needs to enact policies that mimic those years, which include repealing ObamaCare and reducing federal regulation. In addition, federal spending was much smaller then, and that would require $500 billion in immediate budget cuts, and the banishment of the destructive monetary policies promulgated by Federal Reserve Chairman Ben Bernanke. As MHProNews has learned, in order to avoid recession, and the stagnation that’s currently gripping Europe, President Obama needs to combine Clinton-era tax rates and encourage free enterprise to attain a true recovery.

(Photo credit: Wikipedia–President Bill Clinton)

Obamacare Cripples Medicare

August 23rd, 2012 Comments off

SeniorHousingNews says while Democrats lambast vice-presidential candidate Paul Ryan’s proposal to make Medicare a voucher system, Republican presidential candidate Mitt Romney points out President Obama’s Affordable Care Act garners a significant portion of funding by cutting Medicare $716 billion. The combination of reductions in reimbursements to hospitals and private health insurance companies, and reductions to reimbursements to private Medicare Advantage Plans accounts for just under two-thirds of the cuts in Medicare. As MHProNews knows, a significant number of manufactured housing community residents are in the 55+ age bracket, and these cuts could seriously impact their financial well-being. Please see attached graph.

(Graphic credit: Washington Post/Senior Housing News)