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Posts Tagged ‘White House’

Home Cash Buyers Big in Q1; Housing Market a “Crapshoot”

July 7th, 2014 Comments off

Christine Romans of CNNMoney reports almost half of residential real estate deals in the first quarter of 2014 were “swaggering cash buyers, investors from overseas, private equity funds, wealthy individuals,” who comprised a record high 42.7 percent of the purchases. First-time homebuyers were not a significant part of the housing recovery, but with mortgage rates falling again—4.14 percent for the 30-year fixed rate, the lowest rate since October of last year, and 3.25 percent for the 15-year fixed rate–now is a good time to buy, but only if you can afford it. She says the White House is encouraging governmental agencies to make it easier for qualified buyers to obtain loans to buy homes.

Meanwhile, Karl “Chip” Case, co-creator of the S&P/Case-Shiller home price index, calls the housing market a “crapshoot.” He says, “You’ve got much more negative vibrations in the housing surveys about homeownership than we ever had before.” He says the key indicator to watch is housing starts, as MHProNews has learned, and each time in the past it has fallen below a million a month (annualized) it has come right back—except for the recent Great Recession. It fell below 500,000 in 2009, a rate that many thought could never happen, and the return has been very slow. He says the housing market is more segmented, that some areas will see better results than others. “The Chinese are coming over here with millions and billions of dollars, and they want to spend it on assets that tend to hold their value. And at least the theory is that housing does. But it is far from what it was in 2004,” Case adds. ##

(Image credit: totalmortgage.com)

MH Industry Execs attend Mortgage Roundtable at White House

March 21st, 2014 Comments off

Doug Gorman, President of Home-Mart, Inc. in Tulsa, Oklahoma and Lois Starkey, Manufactured Housing Institute (MHI) Vice President of Regulatory Affairs, attended the March 11th White House Green Mortgage Roundtable. Focusing on renewable energy underwriting issues, especially related to the FHA (Federal Housing Administration) Energy Efficient Mortgage and other FHA mortgage products, the (MHI) was invited as the result of a discussion of energy efficient and EnergyStar rated homes that was held during the Federated States Division meeting in February. MHProNews.com has learned Kevin Stevens, Acting Director of FHA Single Family Program Development, arranged for MHI to attend.

(Photo credit: seacoastonline.com–energy auditor Ken Cantara)

Federal Housing Administration Bailout Mandated by Law

October 1st, 2013 Comments off

Following a story from yesterday, Sept. 30, regarding the need for a $1.7 billion bailout of the Federal Housing Administration (FHA) by Treasury, FHA Commissioner Carol Galante says the request for funds comes from an estimate of forecasted losses from Dec. 2012 that cannot be altered due to mandated accounting rules. She says the next report will document that the agency is in better shape than one year ago. But critics argue the FHA was too lax with bad lenders and borrowers with high default rates. Republican leaders want swift passage of the Protecting American Taxpayers and Homeowners (PATH) Act which will eliminate Fannie Mae and Freddie Mac and reform FHA’s accounting system. As nationalmortgagenews reports, earlier this year the White House had projected a shortfall of $943 million, but that number has grown due to the slowdown of mortgage applications recently. However, Galante says the main reason is due to accounting, MHProNews has learned. The Federal Credit Reform Act of 1990 requires the agency to cover all expected future losses for 30 years and maintain a 2% capital reserve. “No bank in America reserves for credit losses on a 30-year terms, instead banks get to adjust reserves based on economic conditions,” says David Stevens, president of Mortgage Bankers Association (MBA). “But this is very complicated, very unique accounting and technically they have to draw the funds even if they don’t need the money.”

(Image credit: Federal Housing Administration)

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)

Modular Home will Return to Show

April 4th, 2013 Comments off

The providencejournal informs MHProNews the Rhode Island Builders Association Home Show will include a full size modular home for the second straight year. CRM Modular Homes of Johnston, RI will construct the home inside the Rhode Island Convention Center for the show, which is schedules to run from April 4 thru April 7, 2013. Karen Corinha, of Corinha Design, chosen to “deck the halls” at the White House in Dec. 2011, will decorate the home.

(Photo credit: Bethany Nauert/JetsonGreen)

Co-ops Descend on White House

May 3rd, 2012 Comments off

Sys-ConMedia reports 29,000 cooperative businesses nationwide will be represented when 150 leaders of the National Cooperative Business Association (NCBA) gather at the White House May 4 with top policy makers to discuss their roles in job creation and business development in their communities. Liz Bailey, CEO of NCBA says cooperatives generate two million jobs each year. Cooperative success stories will be a highlight of the gathering. One of the presenters will be ROC (Resident-owned Communities) USA LLC, which helps homeowners in MHCs cooperatively purchase the land beneath their homes. ROC’s goal is to ensure affordable housing for low to moderate-income people and enable them to build wealth. ROC has helped take 110 communities to self-ownership. U.S. cooperatives account for more than $3 trillion in assets, over $500 billion in total revenue and $25 billion in wages and benefits. Paul Bradley, president of ROC USA, is a contributor to MHProNews.com.

White House Plans for Housing Mortgage Reform

February 13th, 2011 Comments off

On Feb.  11 the Obama Administration offered a plan to reform the mortgage finance industry. It would involve shrinking Fannie Mae and Freddie Mac at 10 percent per year, requiring a down payment of at least 10 percent for Fannie and Freddie loans, and making other changes to help increase private sector borrowing. According to MHI Week In Review, other flaws in the finance housing market to be addressed include increased consumer protection, more transparency and accountability on the part of mortgage securitizers and originators, and establishing national standards for mortgage servicing. In addition, the plan calls for greater support for affordable home ownership through FHA, USDA and the Veteran’s Administration, as well as affordable rental property. A Republican member of Congress says he is encouraged by this proposal that returns the housing market to private capital.