Posts Tagged ‘private investors’

Battle Looms over Housing Finance Reform

July 30th, 2013 Comments off

As part of housing finance reform, the House Financial Service Committee passed a measure that will eventually eliminate Fannie Mae and Freddie Mac and pass the job of bundling most mortgages into marketable securities to private investors. Under the Protecting American Taxpayers and Homeowners (PATH) Act, the government would supervise the quality of securitized mortgages, and the Federal Housing Administration (FHA) would continue to back mortgages to low-income, first-time homebuyers. While critics argue the PATH Act will end the 30-year fixed-rate mortgage and drain the liquidity from the market, perhaps the private sector may be motivated to come up with its own version of the mortgage that has been so popular with consumers. Many housing interest groups—realtors, bankers, builders—would do their best to defeat it, as washingtonpost informs MHProNews. A bill in the Senate would also wind down Fannie and Freddie, but it would insure mortgage securities against catastrophic losses, providing private investors maintained some skin in the game. Although the Senate bill has not made it through committee yet, the debate is shaping up as a welcome initiative to limit the role of government in the mortgage-backed securities market.

(Image credit: CNNMoney)

MH Chassis Start-up Starts in Ind.

January 31st, 2013 Comments off

Wolfpack Chassis of Kendallville, Ind. has received $125,000 in seed money from non-profit Elevate Ventures’ Indiana Angel Network Fund (IANF), according to what insideindianabusiness tells MHProNews. Starting this winter, Wolfpack, located in northern Ind. near other MH and RV-related firms, will manufacture chassis and chassis components for the manufactured home and RV industries. Private investors from northeast Ind. have put in $630,000 seed money as well. The company will hire 20 welders and frame builders for the first two assembly lines. Eventually Wolfpack intends to expand manufacturing to include trailers and class A chassis. Elevate Ventures provides professional advisory services to start-ups and entrepreneurs and connects them with other resources in the state.

(Photo credit: Wikipedia–MH chassis)


GSE’s and Private Sector to Share Risks

June 5th, 2012 Comments off

Speaking to the American Real Estate & Urban Economics Association, special adviser to the Treasury secretary Michael Stegman, noting the restructuring of GSEs to allow private investors to share the risks of Fannie and Freddie MBS (mortgage-backed securities), says: “We believe that this initiative could help support our broader efforts to restart the private mortgage market, shrink the government’s footprint in housing finance, and protect the long-term interests of taxpayers.” NationalMortgageNews tells the loans would have to structure private investors in to risk-sharing, and be attractive to a wide investor base. GSE executives will receive compensation incentives if they initiate risk-sharing deals by the end of Sept. 2012.

(Image credit: Wikipedia Commons)

Road to Housing Recovery Lengthening

December 6th, 2011 Comments off

A CNNMoney article by Joshua Steiner and Allison Kaptur warns prospective real estate investors that the rosy 2012 forecast for the housing market has two pronounced thorns. The first is less than five percent of the mortgage purchase volume is in the hands of private investors. Support for the housing market from the government is very near its limit. But without that support, private lenders will seek higher down payments and less credit risk, which will decrease demand and cause home prices to fall more. Falling prices will turn investors away, creating a downward spiral. Secondly, the Obama administration is not currently promoting new housing initiatives. Both leading Republican contenders, Newt Gingrich and Mitt Romney, say the housing market needs to hit bottom and clear on its own. The authors note the failed leverage of the National Association of Realtors (NAR), the National Association of Home Builders (NAHB), and the Mortgage Bankers Association (MBA) to get increased GSE loan limits extended suggests the government may have reached its housing industry support limit.

LLC Residents Move for State U

November 15th, 2011 Comments off

TheDickinsonPress reports residents of a land lease community in Dickinson, North Dakota, may be relocated to make room for a parking lot for a four-story modular dormitory to house students of Dickinson State University. Linda Steve, Dickinson State University Alumni and Foundation representative, said at a city Board of Adjustment hearing, the new 127-student dormitory will be attached to the Oasis Hotel, which also owns the MHC. Private investors are contributing to the construction of the project. “We are using modular housing. As soon as we get our approval, we’ll be putting post and pier in the ground,” said Ms. Steve.

(Graphic credit: DSU)