Archive

Posts Tagged ‘finance system’

FHA Bailout may be Impending—Price Tag Nearly a Billlion

September 26th, 2013 Comments off

Word is making the rounds the Federal Housing Administration (FHA) will need a U. S. Treasury bailout when the fiscal year ends, as HousingWire has learned from a report by Reuters. There was a suggestion several months ago from FHA and the White House of a possible need for a $943 million bailout—FHA Commissioner Carol Galante said the funds may be required at some point. Rep. Scott Garrett, R-N.J., wrote, “For several years now, President Obama has kicked the can down the road while the Federal Housing Administration’s (FHA) fiscal position continues to worsen. This bailout would require no congressional action, and that’s a problem. The PATH Act, recently passed by the House Financial Services Committee, will reform our housing finance system and get the FHA back on track to prevent future bailouts.” As MHProNews has learned, HUD did not immediately comment on the report.

(Image credit: HousingWire)

Newly-built Housing Index Highest in Seven Years

July 17th, 2013 Comments off

According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) for July, builder confidence for newly-built single-family homes rose six points to 57, the index’s third consecutive monthly gain and the highest reading since Jan. 2006. Based on builder perceptions of current home sales, traffic of prospective buyers and sales expectations for the coming six months, any number over 50 indicates builders see the market as good rather than poor. While the numbers show definite improvement in the newly-built housing market, NAHB Chairman Rick Judson cautions, “This positive momentum could be disrupted by threats on the policy side, particularly with regard to the mortgage interest deduction and federal support for the housing finance system.” MHProNews has learned all four regions registered positive news: The Northeast gained four points to 40, the Midwest moved up eight points to 54, while the South increased five-points to 50 and the West hit 51 after moving up three points.

(Photo credit: comstockpremium)

NAHB Comments on FHFA Appointment

May 2nd, 2013 Comments off

MHProNews has learned the National Association of Home Builders (NAHB) Chairman Rick Judson, a home builder in Charlotte, NC, has issued a statement on the nomination of Rep. Mel Watt (D-NC) to head the Federal Housing Finance Agency (FHFA). “We applaud the nomination of Representative Watt to this important position. After four years in conservatorship, the future of Fannie Mae and Freddie Mac stands at a crossroad. Rep. Watt brings years of experience to this position at a pivotal moment as our nation’s housing market recovers. NAHB looks forward to working closely with Rep. Watt to help address the many complex challenges facing the U.S. housing finance system upon his confirmation by the U.S. Senate.”

(Photo credit: Fotosearch)

NAHB Testifies before Congressional Subcommittee

April 10th, 2013 Comments off

The National Association of Home Buyers (NAHB), testifying before the House Financial Services Subcommittee on Housing and Insurance, urged lawmakers to move cautiously in reforming the Federal Housing Administration (FHA) because the tight lending standards are already preventing qualified home-buyers from obtaining mortgages, as MHProNews has learned. NAHB First Vice Chairman Kevin Kelly stressed the important role the government has played in this recovery because the private sector has “been unable or unwilling to meet housing capital needs,” especially for first-time home buyers, minorities, and those with limited down payment capabilities. “Changes to FHA’s programs cannot be separated from the larger discussion of reforming the complex housing finance system, including future reforms to Fannie Mae and Freddie Mac. Housing has led America out of every economic downturn and can do so again if the future policies regarding housing finance reforms are addressed in a manner that provides liquidity for the entire housing sector,” he added.

(Photo credit: Fotosearch)

Freshman Congressman (and Banker) Sets Sights on Housing

January 30th, 2013 Comments off

According to nationalmortgagenews, newly elected Representative John Delaney (D-MD) will take his seat on the House Financial Services Committee with an eye on reforming the nation’s housing finance system and reducing government intervention. With a background including establishment of a healthcare finance company and organizer of BancAlliance, a community loan bank cooperative, Delaney sees opportunity to tweak Dodd-Frank. Believing lawmakers can deal with risks in the industry in other ways, he says “We have a lot of implementation to do, and then we have to understand how it all works and continue to make adjustments. These things are really living regulations. You don’t pour the concrete to never look at it again.” He wants to reduce the role of the GSEs because the government tends to crowd out private capital in some cases. As MHProNews has learned, he sees the government’s role as providing an environment for the private sector to become more successful, which will in turn lead to job growth. One of the wealthiest members of Congress, colleagues laud his skill in complex negotiations, a trait that should serve him well in his new role.

(Photo credit: Wikipedia–Rep. John Delaney)

NAHB President Responds Favorably to QM Rule

January 10th, 2013 Comments off

Responding to the qualified mortgage rule issued by the Consumer Financial Protection Bureau (CFPB), the National Association of Home Builders’ (NAHB) president, Barry Rutenberg noted the balance struck between creditworthy borrowers seeking mortgages and lenders who are protected from potential lawsuits. MHProNews notes his words: “Our initial review of the QM rule indicates that this balanced approach can be achieved. NAHB is encouraged that regulators heeded concerns from the housing industry to craft a broad standard that includes many of today’s sound mortgage products, including fixed-rate and adjustable-rate mortgages, under the QM standard. To spur the revival of the home lending market, it is essential that regulators act prudently and thoughtfully in the coming year to implement this rule in a sensible manner to avoid disruptions to the housing finance system and ensure qualified borrowers can obtain affordable credit.”

(Image credit: National Association of Home Builders)

Private Capital, Government Insurance for Multifamily

December 5th, 2012 Comments off

In discussing the future roles of Fannie Mae and Freddie Mac in multifamily housing finance, HousingWire tells us the Mortgage Bankers Association (MBA), in a White Paper, outlined a method for government to attract large private capital. New policies need to be enacted that provide a stability and insurance backstop as the governmental role, and attract private capital as the primary source of funding for multifamily housing. Risk-based premiums would fund the program, as they are paid by those who securitize the loans. As MHProNews has learned, the White Paper asks for ensured access to liquidity in all market conditions, and says MBA will work “with a host of stakeholders and industry groups to advance policy proposals that support a vibrant and balanced housing finance system.”

(Photo credit: HousingWire)

Fed Housing Involvement Will Remain

October 18th, 2012 Comments off

Despite calls by analysts and policy makers following the recent crash to get the government out of the housing business, Kerri Ann Panchuk of HousingWire says the GSEs still account for 85-95% of the outstanding mortgage loans, securitized and unsecuritized. Plus there is a myriad of programs to help homebuyers—Home Affordable Mortgage Program (HAMP), federal block grants, other refinance programs, etc.–that are in direct contrast to The Treasury saying it wanted a mortgage finance system supported by more private capital. Doug Duncan, chief economist for Fannie Mae, says private capital does not see clarity in the new system, and that uncertainty will keep investors away. As MHProNews has learned, government will remain involved for the foreseeable future.

(Image credit: Federal Housing Administration)