HUD Issues Faqs and Other Resources for Housing Trust Fund JUNE 26, 2015

HUD Issues FAQs and Other Resources for Housing Trust Fund JUNE 26, 2015

On June 22, HUD published new background resources for the Housing Trust Fund (HTF) program, including a Frequently Asked Questions (FAQ) document, a summary of the interim rule, and a video on HUD’s YouTube channel providing an overview presentation of HTF.

The FAQ addresses questions about the HTF Annual Action Plan, including how and when states can submit HTF allocation plans to HUD, administrative requirements regarding when a state must notify HUD of which agency will administer HTF, and whether states will be allowed to charge pre-award costs to HTF planning activities. The FAQ confirms that Davis-Bacon Labor Standards will not apply to HTF.

The overview video, which features HUD Secretary Julián Castro and Senior Affordable Housing Specialist Milagro Fisher, is the first in a series of videos HUD plans to produce on HTF. The video provides historical background on HTF; an overview of the regulations, including formula allocations, income targeting requirement, and eligible activities; and next steps for implementation. Subsequent videos will cover in detail specific topics related to HTF implementation.

For more information, contact NCSHA’s Althea Arnold. Please continue to send Althea questions about HTF implementation so we can work to ensure HUD addresses them.

Senate Appropriations Committee FY 2016 THUD Bill Virtually Eliminates HOME June 25, 2015

Earlier today, the Senate Appropriations Committee voted 20 to 10 to pass the Fiscal Year (FY) 2016 Transportation, Housing and Urban Development, and Related Agencies funding bill. Appropriations Committee Ranking Member Barbara Mikulski (D-MD), and Senators Dianne Feinstein (D-CA), Brian Schatz (D-HI), and Tammy Baldwin (D-WI) joined the Republican members of the Committee to report the bill for consideration by the full Senate. Full Committee consideration of the measure followed the Subcommittee mark-up on June 23.

The bill would effectively eliminate the HOME Investment Partnerships (HOME) program—a critical program that is central to HFAs’ ability to meet their states’ affordable housing needs. It provides just $66 million – a staggering reduction of 93% from HOME’s already record-low FY 2015 funding level of $900 million. According to HUD, if HOME were zeroed out in FY16 and not funded at the President’s requested level of $1.06 billion, there would be a loss of an estimated 38,665 affordable housing units (16,045 homebuyer units, 15,099 new or rehabilitated rental units, and 7,521 owner-occupied homes rehabilitated for low income homeowners), and 8,813 fewer families would be assisted with HOME tenant based rental assistance.

The severe cut to HOME can be attributed to the insufficient overall funding level provided to the bill and THUD Subcommittee Chairwoman Susan Collins’ (R-ME) prioritization of other programs over HOME. The THUD bill adheres to the Subcommittee’s $55.65 billion 302(b) spending allocation, made pursuant to the Senate’s Budget resolution in keeping with the caps imposed by the Budget Control Act (BCA) of 2011. While this amount is $1.88 billion over FY 2015 levels, it actually represents a decrease of $1.9 billion below current levels due to lower Federal Housing Administration receipts and a $2.3 billion increase in the cost of maintaining existing rental assistance contracts.

During the markup, Senator Collins said that while she believed the BCA caps should be “responsibly increased to a certain degree,” the role of appropriators was to write bills under current law. Senator Mikulski urged her colleagues to work quickly toward a budget deal to raise the spending caps, saying Congress should avoid “showdowns and shutdowns” in the process.

Prior to the full Committee’s consideration of the Subcommittee-passed bill, the HOME Coalition, which NCSHA chairs, sent a statement to the Appropriations Committee urging them to reject the HOME cut, saying that “the severe HOME cut … would have a drastic, negative impact on our nation’s ability to provide housing for those most in need at a time when housing markets and the broader economy continue to struggle, and the need for affordable housing continues to grow.”

At today’s markup, THUD Subcommittee Ranking Member Jack Reed (D-RI) offered an amendment to increase funding for key transportation and housing priorities, contingent on a budget deal that would raise the spending caps imposed by the BCA. For example, Reed’s amendment would have added $990 million to HOME, funding it level to the President’s FY 2016 Budget Request of $1.06 million. His bill would have also added $100 million for CDBG, $100 million for Choice Neighborhoods and $10 million for Lead Hazard Control. The Reed amendment failed on party lines.

Senator Chris Coons (D-DE) also offered an amendment that would seek to restore HOME funding. In his remarks, Coons said that HOME program is the only federal block grant that is used exclusively to house low-income families and its flexibility allows states and localities to address their most pressing housing needs. He added that he saw this first hand in his former role as the New Castle County Executive. Senators Patrick Leahy (D- VT), Dick Durbin (D-IL), Jeanne Shaheen (D-NH), Jeff Merkley (D-OR), and Tom Udall (D-NM) cosponsored this amendment. The Coons Amendment failed along party-lines as well.

Regarding the steep HOME cut, Senator Collins said she believed she needed to prioritize funding for rental assistance and homelessness programs, and that HOME affordable housing activities can also be accomplished through CDBG. She also remarked that HOME had been “the subject of a Washington Post series that found it was fraught with fraud, misuse, and abuse. Now, we’ve moved in years past to correct some of that, but it’s not exactly a program with a stellar record.”

There was vocal support for HOME from other Senators during the markup. Senator Lisa Murkowski (R- AK) explained that although she could not support Senator Coons’ amendment because it would exceed the BCA caps, she hoped to work with Coons further on HOME funding. Senator Murkowkski added that HOME has been vital to affordable housing efforts in Alaska, and is often the only resource that makes sense for rural Alaska. She also stated that she had been told that if the $66 million funding level were to be enacted, it would be unlikely that Alaska could even administer the HOME program. Senator Merkley also spoke in favor of the HOME program, citing a development in the city of Corvallis that serves victims of domestic violence that would not exist without HOME funding.

NCSHA will provide updates on the full Senate FY 2016 THUD bill as soon as it is posted publicly.

Supreme Court Upholds Disparate Impact Standard for Violations of the Fair Housing Act JUNE 25, 2015

In a 5-4 decision, the Supreme Court today issued its opinion ruling that disparate impact claims may be used to support plaintiffs’ claims of alleged Fair Housing Act (FHA) violations. Justice Kennedy wrote the Court’s opinion, joined by Justices Ginsburg, Breyer, Sotomayor, and Kagan in the case of the Texas Department of Housing and Community Affairs (DHCA) v. Inclusive Communities Project, Inc. The decision remands the case to the Fifth Circuit Court of Appeals for further proceedings consistent with the Supreme Court’s opinion.

The plaintiff in the case, The Inclusive Communities Project, claimed that Texas DHCA had caused continued segregated housing patterns by allocating a disproportionate amount of the state’s Housing Credits to developments in predominantly black inner-city areas.

The opinion noted limits to disparate impact liability for affordable housing purposes, stating “Here, the underlying dispute involves a novel theory of liability that may, on remand, be seen simply as an attempt to second-guess which of two reasonable approaches a housing authority should follow in allocating tax credits for low-income housing. An important and appropriate means of ensuring that disparate impact liability is properly limited is to give housing authorities and private developers leeway to state and explain the valid interest their policies serve… It would be paradoxical to construe the FHA to impose onerous costs on actors who encourage revitalizing dilapidated housing in the Nation’s cities merely because some other priority might seem preferable.”

The Court’s opinion is consistent with decisions made by eleven Courts of Appeals, which concluded that the FHA encompasses disparate impact claims. In a statement, HUD Secretary Castro said, “The Supreme Court has made it clear that HUD can continue to use this critical tool to eliminate the unfair barriers that have deferred and derailed too many dreams.”

NCSHA will continue to analyze the Court’s opinion and work with HUD and other interested stakeholders to assess the impact of the Court’s decision on a variety of affordable housing programs.

CFPB Announces Delay in Integrated Mortgage Disclosure Rule Effective Date JUNE 18, 2015

The Consumer Financial Protection Bureau (CFPB) announced yesterday that it will delay the effective date of its Integrated Mortgage Disclosure rule by two months.

The rule, which combines disclosure requirements from the Truth in Lending Act and the Real Estate Settlement Procedures Act, was originally scheduled to take effect August 1, 2015. CFPB Director Richard Cordray stated that the CFPB will issue a "proposed amendment" which will delay the effective date of the rule until October 1, 2015.

The announcement comes after many members of Congress and industry participants urged CFPB to delay the implementation of the rule. They argue that mortgage lenders need more time to comply with the new rule and there should be a grace period for companies that have made an effort to comply with the rule. In its statement, CFPB claimed that an administrative error is the ultimate reason for the two-month delay.

New housing policy foundation breaks silence on housing crisis June 18, 2015

The J. Ronald Terwilliger Foundation for Housing America’s Families, a non-profit organization dedicated to promoting more effective national housing policy, is launching its innaugural initiative to bring housing policy issues to the forefront as the 2016 presidential race gets underway The Foundation wants to bring the "silent" housing crisis of rising rents and diminished access to homeownership into the national conversation. Housing and mortgage finance reform remain backburner issues for too many policymakers, who are content to tinker around the edges or grandstand with empty rhetoric. This lack of reform has a measurable impact on the housing and finance industry, as well as the economy in general and millions of potential homeowners in particular.

The newly launched Foundation wants to serve as a catalyst in pushing housing to the top of the nation's domestic policy agenda. As a first step, it will seek to inject housing as a central issue in the upcoming Presidential primaries.

Further, with its launch, the Foundation is releasing the first in a series of white papers, The Silent Housing Crisis: A Snapshot of Current and Future Conditions. “Millions of families are confronted by a rental market they can no longer afford and a homeownership market for which they do not qualify. Absent a comprehensive and sustained policy response, these problems of affordability and access will continue to worsen due to powerful demographic changes,” said J. Ronald Terwilliger, the Foundation’s chairman and founder. “For far too long, the desperate situation in housing has been largely ignored by our nation’s leaders and the media, and it’s time to break the silence.”

“Safe, affordable housing is a basic human right and for too many Americans is an issue of daily concern. The pendulum of public policy has swung back and forth in recent years, at times too far in favor of homeownership, and at others pushing people into rental in ways that have driven up prices and taxed the supply of affordable workhouse housing. Finding the right balance is critical to the future of this nation – its people and its economy – and the Terwilliger Foundation has brought together the right people to offer reasonable, workable recommendations to the policymakers who will ultimately shape the future of housing in this country,” said Mortgage Bankers Association CEO and President David Stevens.

Other leaders and advisors agreed the issue is critical, and that this Foundation was the best chance to bring it to the forefront.

“As a business leader, philanthropist, and innovative policy thinker, Ron Terwilliger has had a tremendously positive impact on housing in our country. It’s a great privilege for me to join him in this worthy effort,“ said Henry Cisneros. “The rising cost of rental housing, along with the diminishing homeownership prospects for millions of families, are matters of urgent national concern. I look forward to working with Ron and my colleagues in elevating these issues to the national stage and proposing solutions of our own.”

Scott Brown added: “One of the short-term goals of the Foundation is to ensure that housing becomes a central issue in the upcoming presidential primaries. By encouraging the candidates of both parties to lay out their plans to improve the housing situation in our country, we will establish a solid platform for a comprehensive legislative response.”

More than one in four renter households spend in excess of 50% of their incomes just on housing. A major factor contributing to these unsustainable housing cost burdens is the acute shortage of affordable rental homes. “Housing costs are rising and median incomes have declined over the past ten years. A crisis is brewing and it’s not going to be corrected if our leaders aren’t talking about it and offering solutions,“ said Rick Lazio. “We are committed to a strong, specific and meaningful discussion that must begin with the tragic unavailability of affordable rental housing.”

The national homeownership rate stands at a 22-year low. The homeownership rates for younger households, who traditionally account for most first-time homebuyers, have dropped precipitously. The rates for minority families have also plummeted, wiping out nearly all the gains achieved over the past two decades. “For more than a hundred years, American families rented, saved, then bought their first home – a giant step into the middle class. Today a trifecta of barriers blocks that first step: unaffordable rents, tight credit, and low wages. I look forward to working with my Foundation colleagues to identify ways to topple these roadblocks,” said Nic Retsinas.

Joining Terwilliger on the Foundation’s Executive Committee are Scott Brown, the former U.S. Senator from Massachusetts; Henry Cisneros, chairman of the CityView companies and former Housing and Urban Development Secretary; Rick Lazio, partner at Jones Walker LLP and former U.S. Representative from New York; and Nic Retsinas, senior lecturer at Harvard Business School and former commissioner of the Federal Housing Administration. The Foundation’s President is Pamela Patenaude, who most recently served as director of the Bipartisan Policy Center’s Housing Commission.

The Foundation’s bipartisan Advisory Board includes Carin Barth, president of LB Capital, Inc.; Ed Brady, first vice chairman of the National Association of Home Builders; Raphael Bostic, professor at the Sol Price School of Public Policy at the University of Southern California; Alfred Dellibovi, former president of the New York Federal Home Loan Bank; Carol Galante, professor at the University of California, Berkeley and former FHA commissioner; Renee Lewis Glover, chair of Habitat for Humanity International; Bart Harvey, chairman of the Calvert Foundation; Jeb Mason, partner at The Cypress Group; Rick Rosan, former president of the Urban Land Institute; and David Stevens, chief executive officer and president of the Mortgage Bankers Association.

Yellen: Fed Looking for Ways to 'Improve' CRA Rules JUN 17, 2015

WASHINGTON — Federal Reserve Board Chair Janet Yellen said Wednesday that the agency is examining ways to improve its implementation of the Community Reinvestment Act amid concerns that regulators are letting too many poor communities go unserved by banks. Speaking at a press conference following the Federal Open Market Committee's two-day meeting, Yellen said that the central bank takes CRA compliance "very seriously" and added that regulators frequently meet with community organizers to seek out ways to meet their financial needs. But she added that the Fed is examining whether the rules implementing the law need to be improved. "We take CRA very seriously and … for those banks that we supervise, we have a set of guidelines and are very conscientious in attempting to evaluate CRA performance," Yellen said. "But we are looking at CRA and will continue to look to see whether there are ways in which implementation can be improved." Yellen's comments come as riots in Baltimore in April and a tense standoff between the city of Ferguson, Mo., and its police department last fall has drawn greater attention to the structural causes of poverty in inner city and minority communities. Lawmakers and community advocacy groups are pushing for the Fed and other regulators to overhaul the way they implement the CRA in order to incentivize greater investment in those communities and greater access to traditional banking services. Critics say the law has devolved into a rote compliance exercise that few banks fail and that lets poor and underserved communities fall through the cracks, while banks themselves say they are making meaningful contributions through the CRA and other means. Sen. Elizabeth Warren, D-Mass., and Rep. Elijah Cummings, D-Md., sent a letter to the Government Accountability Office May 11 asking the agency to examine ways to use the CRA to "responsibly increase access to basic banking services." Yellen also dismissed provisions in a recently introduced bill from Senate Banking Committee Chairman Richard Shelby, R-Ala. Yellen, who has criticized "audit the Fed" bills in the past, said that the bill's language to allow the GAO to examine the FOMC and other measures are redundant and unnecessary because the FOMC's interest rate-setting process is already highly transparent. "I suppose I would ask, 'What exactly is the problem?' " Yellen said. "It is our priority on being an accountable and transparent central bank, and I think if you compare the transparency of monetary policy decisions in the Federal Reserve with other central banks, we are one of the most transparent central banks in terms of the information that we provide to the public in a variety of different ways." Yellen also spoke broadly about the state of the U.S. economy, suggesting that she believes that sluggish growth in the early part of 2015 is "cyclical" and that she believes that wage growth in particular is poised to more closely match the relatively low unemployment rate of recent months. She also said that the recent rebound in home sales has presented a double-edged sword to the economy, restoring wealth to many households that already own homes but pushing homeownership further out of reach for families looking to buy. But Yellen said that, even though housing is relatively affordable for qualified buyers, limited credit availability and dimmer economic prospects for young people are troubling long-term trends in the market. "I think credit availability remains quite constrained," Yellen said. "And I think we are seeing quite a bit of reluctance given the job market … for young people to buy homes." During the FOMC meeting, the committee voted Wednesday to continue its years-long near-zero interest rate level, citing moderate improvement in economic fundamentals but persistent slack in the labor market and low inflation. Yellen said in a prepared statement that the rate may remain low for some time even after labor and inflation bounce back. "The committee currently anticipates that, even after employment and inflation are near mandate- consistent levels, economic conditions may, for some time, warrant keeping the target funds rate below levels the committee views as normal in the longer run," Yellen said. The committee revised its 2015 economic projections substantially, estimating the U.S. would experience only between 1.8% and 2% growth this year rather than 2.3%-2.7% after its March meeting. The committee seemed to think that the long-term prognosis remains relatively unchanged, with 2016 and 2017 growth estimates remaining relatively unchanged. Projections for unemployment also rose slightly from March, with the committee estimating joblessness to remain stable at 5.2-5.3% this year, down from 5.0-5.2%. Longer-run estimates remained essentially unchanged, though a larger number of FOMC members thought that unemployment might creep up in the long run than in earlier meetings. As in earlier meetings, 15 of the 17 committee members said they favor a rise in the federal funds rate sometime this year. But members' projections for how high the rate should rise this year has dropped from six months ago, when nine members estimated a rate of between 1% and 2% in 2015. All seventeen committee members said the rate would be below 1% after the June 17 meeting, though most members continued to favor a long-term target rate of between 3% and 4%.

Underwater’ American homeowners still drowning in mortgage debt June 12, 2015

Some homeowners are still reeling from the Great Recession and it may take 10 years to recover.

The percentage of homes underwater — where the home is worth less than the mortgage — has been dropping as the housing market has recovered, but more than 4 million U.S. homeowners owe the bank at least 20% more than their homes are worth, totaling $579 billion of so-called negative equity, according to real estate company Zillow. “Homeowners who remain underwater will likely be the toughest to free from negative equity,” says Zillow chief economist Stan Humphries.

The rate of underwater homeowners is much higher among the homes with the least value, according to Zillow, which uses data from credit bureau TransUnion. More than 25% of those who own the least valuable third of homes were upside down, compared with about 8% of the most valuable third of homes. In Atlanta, 46% of low-end homeowners were underwater, compared with 10% of high-end homeowners. In Baltimore, 32% of low-end homeowners were in negative equity, compared with 9% of those who own the highest-value homes.

The good news: There were 15 million homes in negative equity at the peak of the housing crisis. The national negative equity rate dropped to 15.4% of all homes with mortgages in the first quarter, down from rate 18.8% the same period last year. The rate of negative equity improved in all of the 35 largest housing markets in the first quarter of 2015, “a sign that the country is continuing to recover from the lax lending rules and subsequent housing market bust of the last decade,” the report says.

Millions of Americans are so far underwater, it’s likely they may not re-gain equity for up to a decade or more at these rates,” Humphries says. Because negative equity is concentrated so heavily at the lower end of the market, it prevents potential first-time buyers from finding affordable homes for sale, he adds. “Owners of those homes can’t move up the chain because they’re stuck underwater in the entry- level home they bought years ago. The logjam at the bottom is having ripple effects.”

Many markets are suffering from limited inventory, tepid demand, elevated foreclosures “and a whole lot of frustration,” Humphries says, but overall house prices nationwide are climbing, helped in part by low inventory and low mortgage rates. U.S. house prices rose 2.7% on the month in April and 6.8% on the year, according to the latest report from mortgage-data firm CoreLogic. Prices in Dallas rose 10.3% in those 12 months, but Washington, D.C. saw a more modest 1.6% 12-month increase.

But many homeowners still struggle. Over half of Americans (52%) have had to make at least one major sacrifice in order to cover their rent or mortgage over the last three years, according to a recent report, “How Housing Matters Survey,” which was commissioned by the nonprofit John D. and Catherine T. MacArthur Foundation. These include getting a second job, deferring retirement saving, cutting back on health care, running up credit card debt, or moving to a worse neighborhood. Urban Institute: Rental surge to drop homeownership rate to 61.3% by 2030 June 12, 2015

Rental housing stock not nearly enough to handle coming wave

The Urban Institute’s Housing Finance Policy Center just released a major new longitudinal study of expected household formation and homeownership rates from 2010 to 2030.

The paper predicts that the homeownership rate will continue to decline through 2030 and that a major rental surge is upon us, a surge the United States is not truly prepared to meet.

Most concerning, they forecast the homeownership rate to drop to 61.3% by 2030.

For context, the homeownership rate in the first quarter of this year fell to 63.7%, the lowest since 1990, according to the U.S. Census.

The homeownership rate is the ratio of households that own to overall households — the remaining being rental households.

A blog written by the study authors highlights five key take-aways:

1. A rental surge is coming. 13 million of the 22 million new households that will form between 2010 and 2030 will seek to rent, rather than buy, their homes.

2. Most of the new households that will form between 2010 and 2030 will be non-white.

3. The homeownership rate will decrease for all age groups, except those over 75. The authors predict that the overall homeownership rate will be 61.3% by 2030: 70% for whites, 40% for African Americans, and 48% for Hispanics.

4. African Americans will fall further behind all racial groups in homeownership. By 2030, the homeownership rate for African Americans will be 40%, a large drop from 46% in 2000. The rate for Hispanics will move in the opposite direction, increasing from 46% in 2000 to 48% in 2030.

5. The number of senior-headed households will increase dramatically. The number of households over age 65 will increase from 25.8 million in 2010 to 35.4 million in 2020 and to 45.7 million in 2030. FHA EXPANDS OPPORTUNITIES FOR REVERSE MORTGAGE

‘NON-BORROWING SPOUSES’ TO REMAIN IN THEIR HOME June 12, 2015

The Federal Housing Administration (FHA) today issued a revised policy under its Home Equity Conversion Mortgage (HECM) Program giving FHA-approved lenders expanded options to allow eligible ‘non-borrowing spouses’ the potential to remain in their home following the death of the last surviving borrower. Read FHA’s new mortgagee letter.

Last year, FHA amended its HECM policies to allow for the deferral of foreclosure, or ‘due and payable status’ for certain Eligible Non-Borrowing Spouses for case numbers assigned on or after August 4, 2014. Today’s action allows lenders to offer similar treatment for eligible HECMs and Eligible Non-Borrowing Spouses with FHA case numbers issued before August 4, 2014.

Under FHA’s revised policy, lenders will be allowed to proceed with submitting claims on HECMs with Eligible Surviving Non-Borrowing Spouses and Case Numbers assigned before August 4, 2014 in accordance with the terms of the mortgagee letter by:

•Electing to assign the HECM to HUD upon the death of the last surviving borrower, where the HECM would not otherwise be assignable to FHA solely as a result of the death of the borrower. (The Mortgagee Optional Election Assignment)

•Allowing claim payment following sale of the property by heirs or estate; or

•Foreclosing in accordance with the terms of the mortgage, and filing an insurance claim under the FHA insurance contract as endorsed.

By electing the Mortgagee Optional Election Assignment (MOE), lenders will be permitted assign an eligible HECM to HUD despite the death of the last surviving borrower and regardless of the loan’s unpaid principal balance. Following the death of their borrowing spouse, non-borrowing spouses may remain in their home under the following conditions:

•The lender or servicer agrees;

•The reverse mortgage was assigned an FHA case number prior to August 4, 2014;

•They are current in making timely tax and insurance payments;

•They maintain the property under the terms and conditions of the HECM;

•They were legally married to the borrowing spouse at the time of the loan closing, OR they were engaged in a committed same-sex relationship with the borrower akin to marriage but were prohibited under state law from legally marrying the borrower at the time of the loan’s origination, but became legally married prior to the death of the borrower;

•They currently reside and resided in the property as his/her principal residence at the origination of the HECM and throughout the duration of the HECM borrower’s life;

•They have, or are able to obtain, within 90 days following the last surviving borrower’s death, good, marketable title to the property or a legal right to remain in the property for life; and

They meet all other terms and conditions of the original mortgage contract.

To make it home sweet home, there’s an app for that

By Michele Lerner June 4 at 7:00 AM

Home buyers, owners and renters have a new batch of tech-savvy tools to simplify their lives. (istock)

Data apps

Heather Embrey, an associate broker with McEnearney Associates in McLean, says she’s often asked about demographics in various neighborhoods, but Fair Housing laws prohibit agents from sharing information about crime statistics and the racial, ethnic or religious makeup of a community.

She recommends several apps that provide easily accessible information about neighborhoods, which can be used by renters and home buyers.

•Dwellr: Dwellr is an app developed by the Census Bureau based on information garnered in the agency’s American Community Survey, Embrey says. The GPS-based search app provides information on 40 topics for every neighborhood, so you can find out things such as how many residents are single or married, the median age of residents, the number of college graduates, the racial and ethnic background of residents, the preferred method of commuting and median home values.

Dwellr even generates a list of 25 top places for you to live based on your preferences.

[Five handy apps to help you buy, rent or renovate a home] http://www.washingtonpost.com/blogs/where-we-live/wp/2015/06/03/5-handy-apps-to-help-you-buy- rent-or-renovate-a-home/

•Homefacts: Homefacts, a subsidiary of housing data provider RealtyTrac, offers an app that allows consumers to search for information about an area based on their location, an address, a city or a Zip code.

Users can filter the information based on what they are interested in knowing about the area in a two- mile radius around an address.

“Buyers want to make a good investment decision when they buy a home, so they need more information than they can get from an air-brushed brochure from a real estate agent,” Moyle says. “Homefacts not only includes information about a property itself, but gives you complete demographics, information about crime risk, complete details about registered sex offenders, former drug-lab locations and what we call ‘parcel risk’ to property that evaluates whether the area is prone to landslides, sinkholes, earthquakes, tornados and floods.”

The Parkmobile app lets you remotely pay the meter. (Parkmobile)

The DocuSign app allows you to electronically review and sign documents from your smartphone. (DocuSign)

●GreatSchools: School performance can impact home values, so even buyers without kids often want to know about the local schools. GreatSchools, which doesn’t require an app but has a mobile-optimized Web site, provides ratings based on test scores and a variety of other factors. More than 200,000 public, public charter and private schools are reviewed on the site by parents and educators.

“Realtors can tell the buyers about which school district a home is located in and certainly some buyers come to me knowing exactly which one they want to be in,” Embrey says. “Some buyers like to use the GreatSchools app, which provides scores for schools based on algorithms, but realistically I think you have to take the data with a grain of salt and go see a school for yourself to see if it’s a good fit for your kids.”

Sponsor-Generated ContentThe Internet of Things in four charts

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•AroundMe: Neighborhoods are about more than crime and schools, of course. Renters and buyers who want to know about amenities such as the closest coffee shop or cafe may want to try the AroundMe app. The app has icons to make it easy to search for what you want, is available for locations around the globe and can be used in seven languages.

“You can set the app to any location and filter it to find out what you want to know, such as the closest public transportation and the nearest restaurants,” says Mike Alderfer, an agent with Redfin in Washington. “It’s great if you’re new to the area or new to a neighborhood, because you can use it to figure out where you would go if you lived in a particular community.”

[Wondering what your closing costs will be? Ask Close It!] http://www.washingtonpost.com/lifestyle/magazine/apptitude-wondering-what-your-closing-fees-will- be-ask-closeit/2014/08/13/3836df3a-11e4-11e4-8936-26932bcfd6ed_story.html

House- and apartment-hunting apps

The volume of listings for apartments and homes to rent or buy and the number of sites that supply this information can be overwhelming, but a few apps can help you narrow your search.

•RadPad: The RadPad app allows you to go into a neighborhood and search for rentals based on your location or to browse listings in a particular area, says Jonathan Eppers, co-founder and CEO of RadPad. “Each listing includes at least three photos so it works like Instagram,” Eppers says. “The listings aren’t limited to apartments, either, so you can find a condo that’s being rented, a townhouse, a single-family home or a duplex. In Los Angeles, we list houseboats, too.”

Eppers says RadPad updates its listings constantly so there’s less risk of finding something that’s already been rented.

“In D.C., rentals usually get leased within seven to 10 days of listing, so having updated listings is really important,” Eppers says. “We pull a place off the feed as soon as it’s rented, and we send a message to people who have been looking at it so they know it’s been rented.”

RadPad has a “DriveTime” feature that estimates how long it wll take to get from a particular rental to another location via car, bus, bike or on foot.

Once you find a place, you can use RadPad to pay the rent even if your landlord doesn’t use the system, Eppers says. The company sends a check on your behalf and tracks the payments so you can avoid late fees.

The AroundMe app helps you locate the closest bank, coffee shop, pharmacy and supermarket. (Around Me)

The Dwellr app was developed by the Census Bureau based on information garnered in the agency’s American Community Survey. It provides demographic information on neighborhoods. (itunes.apple.com)

•RealtyTrac: RealtyTrac’s new mobile app allows users to find complete property information with the click of a photo, even on properties that are not listed for sale, says Moyle. “Buyers can jump ahead of the sales process because we can do a home value estimate on a property and tell them how much the owners owe on their mortgage,” Moyle says. “The buyers can approach the owners and find out if they’re willing to sell and basically create their own inventory. Some owners don’t realize how much equity they have, so this is a good tool for them, too.”

Users can find out about nearby listings or recent sales with the app, too.

•Redfin: Embrey says that even though she’s not a Redfin agent, she admits that Redfin has one of the best apps around for buyers. “Because Redfin is a brokerage with direct access to the MLS [multiple listing service], we get real-time updates so that our listings are accurate,” Alderfer says. “It’s easy for buyers to search for new listings and to search for listings near a particular location.”

Alderfer says buyers can benefit from the “agent insights” feature which lets agents leave both positive and negative notes on a home they have seen, such as “the basement bathroom isn’t finished” or “the second bedroom is big enough to be a second master bedroom,” which can help buyers decide whether to visit a home.

The app can be used to search within a particular school district, or you can use the search nearby function to find everything on the market around you.

Transit apps

Transportation options affect everyone in the D.C. area, so these apps can be helpful before, during and after a home search.

•WalkScore: “WalkScore has expanded beyond just giving each location a score on how close it is to stores and amenities,” Alderfer says. “Now they have BikeScore to show you how close it is to bike lanes and bike-sharing stations and TransitScore to show you how well buses and the Metro serve an area.”

You can also search for apartments on WalkScore based on transit options or commuting distance.

•DC Metro and Bus: Alderfer recommends using this app to figure out how to commute by public transportation and how much it will cost.

You can get real-time updates for Metro and Metrobus service through the app, too.

•Parkmobile: This app can be hugely helpful when renters or buyers are looking at multiple properties in a particular neighborhood and don’t want to have to rush back to feed their parking meter, Alderfer says. The app lets you remotely pay the meter so you’re not tied to a particular time.

You can opt in for notification when your meter is getting ready to expire, saving money on parking tickets.

RadPad, an online rental marketplace, has upgraded their iPhone app and Web site to allow renters to pay their rent with the service. (Courtesy of RadPad)

Miscellaneous apps

These apps can provide you with specialized help, whether you’re in the early stages of a home search or already own a home.

•Bankrate: “There are lots of mortgage calculators out there, but I think Bankrate has the best app for quick calculations when you’re trying to estimate affordability,” Alderfer says. “You can put in your down payment and the home price to calculate your buying power, or you can do it the opposite way and enter an amount you’re comfortable with as a monthly payment, such as $2,000, and find out what size mortgage that would buy.”

Alderfer says buyers can factor in condo fees and taxes and insurance to help them figure out the true monthly cost of a home and their buying power.

In addition, the site has updated interest rate information so you can more easily estimate your costs based on current mortgage rates.

•Pro Landscape: Whether you’re trying to envision what a home would look like with a new landscape scheme or want to develop a plan for a home you already own, the Pro Landscape app lets you take a photo of the property and then create an ideal landscape with photos of trees, shrubs, grass, flowers and “hardscape” features such as paving stones, walls, walkways and outdoor fireplaces.

While the app works on smartphones, too, the features are easiest to see and use on larger tablet screens.

You can share designs with social media and use the “find a professional” feature to locate a local contractor or garden center to help you with your project.

•DocuSign: This app allows you to electronically review and sign documents from your smartphone so you can write an offer or accept an offer instantly. “In a competitive environment, speed is essential, and this app allows you to make a fast move instead of waiting until you can get in front of a computer or to meet in person,” Alderfer says.

DocuSign lets you convert forms so they can easily be completed. It can also be beneficial after you buy a home, since you can use it to review contracts and estimates for home improvement projects.

House Passes Amendment Nullifying HUD 'Disparate Impact' Rule June 5, 2015

The House approved a Mortgage Bankers Association/trade group-supported amendment to HUD’s fiscal 2016 appropriations that would thwart a HUD proposed final rule that would allow it to use funds to implement, administer and enforce “disparate impact” provisions in the Fair Housing Act.

The amendment, introduced by Rep. Scott Garrett, R-N.J., passed by a 232-196 vote. It is part of H.R. 2577, the Transportation, Housing and Urban Development and Related Agencies Appropriations Act for Fiscal Year 2016.

“While everyone agrees that discrimination has no place in the lending practices of any respectable institution, the application of disparate impact theory has had devastating impacts on law-abiding businesses who have diligently maintained fair and consistent lending standards,” Garrett said. “The federal government should be encouraging sound business practices, not punishing those that utilize them.”

The HUD final rule, Implementation of the Fair Housing Act’s Discriminatory Effects Standard, would create liability for housing policies or practices that have a “disparate impact” on a protected class, even when there is no intent to discriminate. MBA and the trade groups noted under this rule, even if a mortgage lender, apartment owner, apartment manager or housing cooperative took every step to prevent discrimination and treats all consumers fairly and equally, a neutral policy could serve as a basis for very serious and harmful claims in the absence of intentional discrimination.

In a recent New York Times op-ed (http://www.nytimes.com/roomfordebate/2015/04/27/can- discrimination-exist-without-clear-intent/sound-lending-practices-alone-can-cause-disparate-racial- affects), MBA President and CEO David Stevens said the concept of disparate impact remains vague and subject to overly broad interpretation.

The problem with applying disparate impact theory to mortgage discrimination cases is that it allows the mere existence of a statistical variance to make a discrimination claim," Stevens said. "As a result, it exposes every lending decision--whether to deny or make a loan, the pricing of a loan and any other credit terms--to a potential legal challenge based on statistical differences, even if those differences are based on sound credit underwriting or compliance with other federal regulations."

The MBA/trade group letter asserted that the real estate finance industry already uses neutral standards, such as loan-to-value ratios and debt-to-income ratios in mortgage underwriting and for resident screening purposes because they are nondiscriminatory.

"Under HUD’s rule, a lender, apartment owner, apartment manager or housing cooperative could be challenged if these practices yield different results for a protected class, and also face severe reputational harm and significant costs of defense,” MBA and the trade groups wrote in a letter to House members.

The letter reinforced the industry’s support for the Fair Housing Act. “We…are committed to providing our housing services to families in full compliance with all fair lending and housing laws,” the letter said. “Since 1968, the Fair Housing Act has prohibited discrimination in the sale, rental, or financing of dwellings and in other housing related activities on the basis of a race, color, religion, sex, disability, familial status or national origin. We strongly support this historic law, and we are proud to call it part of America’s national housing policy. The Fair Housing Act has improved the lives and neighborhoods of families nationwide.”

However, the letter noted nearly 50 years after Congress enacted the Fair Housing Act, HUD’s final rule is not supported by the text of the Act. “HUD’s regulation would create liability for housing policies or practices that have a ‘disparate impact’ on a protected class, even when there is no intent to discriminate,” the letter said.

Joining MBA in the letter: American Bankers Association; American Financial Services Association; Community Home Lenders Association; Consumer Bankers Association; Consumer Mortgage Coalition; Council for Affordable and Rural Housing; Credit Union National Association; Housing Policy Council of the Financial Services Roundtable; Independent Community Bankers of America; National Affordable Housing Management Association; National Apartment Association; National Association of Housing Cooperatives; National Leased Housing Association; National Multi Housing Council; and the U.S. Chamber of Commerce.

MBA, NAHREP Partner to Train, Recruit Hispanic Mortgage Bankers Jun 2, 2015

The Mortgage Bankers Association and the National Association of Hispanic Real Estate Professionals announced today a new partnership to work together to advance NAHREP's goal of advancing sustainable Hispanic homeownership and MBA's goal of offering training and education to prospective and current mortgage professionals.

“The American Dream, to own your own home, is embraced by more people, from more backgrounds, than ever before,” said MBA President and CEO David Stevens. “And yet real challenges remain for many Americans, especially first-time homebuyers, the self-employed and new Americans, to access credit. To serve our diverse customers, the real estate finance industry needs a diverse workforce. I’m proud of this new partnership with NAHREP and I am confident it will help members of both organizations better serve their clients.”

The housing industry needs a workforce that reflects today's diverse home buyer population." said NAHREP co-founder and CEO Gary Acosta. “There are incredible career opportunities in real estate finance and the Mortgage Bankers Association is doing some of the most innovative work in attracting new entrants into the industry. In support of its mission to advance sustainable Hispanic homeownership, NAHREP is delighted to partner with MBA to help introduce the mortgage business to Latinos and other growing populations."

NAHREP is the largest trade association in America whose members primarily serve Hispanic homebuyers and sellers. MBA is the primary national association representing the real estate finance industry. NAHREP and MBA share an interest in increasing the number of Latinos employed within the housing finance industry as part of an overall effort to increase access to homeownership for Latinos. As part of their recently announced Hispanic Wealth Project (http://nahrepfoundation.org/hispanic- wealth-project/), NAHREP has established a goal to double the number of Latinos employed in housing finance over the next 10 years.

Through the partnership, the organizations will collaborate on marketing MBA’s Mortgage Banking Bound education program to its current and prospective members, colleges and universities with considerable Latino enrollments, identifying and recruiting Latino instructors for Mortgage Banking Bound, and raising money for Mortgage Banking Bound scholarships. Study: Virginia Requires 11th Highest Wage to Rent Two Bedroom May 28, 2015

A new report by the National Low Income Housing Coalition says you need to earn at least $21.10 per hour to afford a two bedroom apartment in Virginia.

That figure is the 11th highest wage, with the highest being in Hawaii at $31.61.

Also in the study is a breakdown by jurisdiction and county.

See the study here: http://nlihc.org/oor

In Rockingham County, the wage to afford a two-bedroom apartment is $16.60, $12.54 in Page County and $15.40 in Augusta County.

In the Harrisonburg Metropolitan Statistical Area (MSA), $16.60 per hour is necessary to rent a two bedroom. On minimum wage, the ideal affordable rent in the Harrisonburg area is $377 per month.

According to the study, the average wage in the U.S. to afford a "modest two-bedroom apartment" is $19.35 per hour. That is more than two and a half times the federal minimum wage ($7.25), says the study.

To put that into a greater perspective, the study finds that a renter earning the federal minimum wage would need to work 85 hours per week to afford a one bedroom (based on Fair Market Rent) and 102 hours per week to afford a two bedroom.

The Fair Market Rent for a two bedroom in the Commonwealth of Virginia is $1,097 per month, says the study.

Study Finds LGBT Community Views Homeownership as Good Investment MAY 27, 2015

The lesbian, gay, bisexual and transgender community overwhelmingly views homeownership as a strong investment, although worries of housing discrimination persist, according to a new study.

The first-of-its-kind study by Better Homes and Gardens Real Estate and the National Association of Gay and Lesbian Real Estate Professionals found that nearly 90% of LGBT homeowners and 75% of LGBT non- homeowners see homeownership as a good investment. Furthermore, the study found that this perception proved true across all age groups, including millennials.

The LGBT community represents an estimated $840 billion in buying power, according to NAGLREP. Additionally, 54% of respondents owned some form of real estate. These factors help to make the LGBT community a vital portion of the housing market.

"The LGBT community is a key part of the nation's landscape and a powerful market segment that is increasingly achieving social milestones that are historical triggers to home purchases, such as partnerships, marriage and having children," said Jeff Berger, founder of NAGLREP.

As for concerns related to homeownership, nearly three-quarters of respondents feared some sort of housing discrimination when buying or renting, from sources ranging from real estate agents and mortgage lenders to landlords and neighbors. Berger called this statistic "alarming," suggesting that it showed the need for NAGLREP's legislative and advocacy work on behalf of LGBT consumers.

While 86% of LGBT individuals surveyed said they wanted a real estate professional that was LGBT friendly, just 13% felt it was important that the agent is LGBT themselves.

Other concerns when buying a home included safety (88%), living in a better neighborhood (76%) and having a bigger residence (57%). Additionally, marriage was on the mind of many respondents. More than 80% of respondents felt a Supreme Court ruling in favor of marriage equality would make them feel more financially protected. HUD: Associated Bank ‘redlining’ settlement largest ever

HUD Secretary Castro says settlement “sends a strong message” May 27, 2015

The approximately $200 million in mortgage loans that Associated Bank (ASB) is required to provide to borrowers in minority neighborhoods as part of a settlement with the U.S. Department of Housing and Urban Development over charges of discriminatory lending makes it the largest settlement of its kind, HUD said Wednesday.

HUD issued a statement Wednesday, after HousingWire and other publications reported Associated Bank’s settlement, which the bank disclosed in a filing with the Securities and Exchange Commission.

According to HUD’s statement, the original complaint against Associated Bank was one of the largest “redlining” complaints brought by the federal government against a mortgage lender, and the $200 million settlement with Associated Bank is the largest of its kind that HUD has ever reached.

"This settlement sends a strong message that HUD does not tolerate practices that unfairly restrict an equal and open housing market," said HUD Secretary Julián Castro. "Discriminatory lending practices have too often cut off too many credit-worthy families from the opportunities they need to thrive. This agreement will ensure that more Americans can fulfill their hopes and aspirations."

The settlement resolves a HUD Secretary-initiated complaint alleging that the Wisconsin-based bank engaged in discriminatory lending practices from 2008-2010, involving the the denial of mortgage loans to African-American and Hispanic applicants and the provision of loan services in neighborhoods with significant African-American or Hispanic populations, HUD said.

In its statement, HUD said Associated Bank will pay nearly $10 million in the form of lower interest rate home mortgages and down payment/closing cost assistance to qualified borrowers in majority-minority census tracts in the housing market areas of Chicago; Milwaukee; Minneapolis-St. Paul; Racine, Wisconsin; Kenosha, Wisconsin; and Lake County, Illinois.

Additionally, HUD said that Associated also agreed to the following settlement terms:

• Invest nearly $200 million through increased home mortgage lending activity in majority-minority census tracts in these areas

• Provide nearly $3 million to help existing homeowners repair their properties in these predominantly minority communities

• Pay $1.4 million to support affirmative marketing of loans in the above census tracts

• Commit $1.35 million for community reinvestment and fair lending education and training

• Open four loan production offices in majority-minority census tracts (three in the Chicago area and one in the Milwaukee area), subject to regulatory approval, in addition to three branches Associated has opened or is committed to opening in or near majority-minority census tracts in Chicago, Milwaukee, and Racine since HUD's complaint was filed

• Offer fair housing training to all its employees and agents with substantial residential lending activity within six months and maintain a second level review process for all denied residential loans

As is customary with settlements such as these, Associated Bank denies the allegations of discrimination but said that it is agreeing to take a number of measures to improve its lending practices involving minorities.

"Associated is pleased to have concluded these discussions and will fully comply with the agreement. Doing so aligns with our ongoing commitment to our customers and communities where we do business," said Philip Flynn, president and CEO of Associated Bank, in a statement.

"We agree with HUD that we can improve our performance in some of the communities and neighborhoods we serve,” Flynn said. “We remain committed to the promotion of home ownership and lending in those areas.”

HUD AND VIRGINIA LANDLORD SETTLE ALLEGATIONS OF DISCRIMINATION AGAINST TENANTS WITH DISABILITIES May 26, 2015

WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) announced today an agreement with Roanoke, Virginia-based Retirement Unlimited, Inc. resolving allegations of discrimination against residents with disabilities in two of the company’s rental properties. The settlement requires Retirement Unlimited to pay $167,500 in damages. Read HUD’s agreement with Retirement Unlimited.

The Fair Housing Act prohibits discrimination against persons with disabilities. This includes requiring persons with disabilities to pay additional security deposits or to buy liability insurance because they use motorized wheelchairs.

The case came to HUD’s attention when two residents and Housing Opportunities Made Equal (HOME), a non-profit fair housing organization based in Richmond, Virginia, filed complaints alleging that Retirement Unlimited required residents who use motorized wheelchairs or scooters to pay a $1,500 security deposit, acquire a minimum of $100,000 in liability insurance, and sign an agreement stating that approval of the motorized wheelchairs could be withdrawn if payments to maintain the required insurance policies were not made.

After receiving the complaints, HUD conducted an investigation and found that the policies were applied at other properties and to other residents.

“Persons with disabilities may not be required to pay extra fees or obtain liability insurance because they use motorized wheelchairs,” said Gustavo Velasquez, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “We’re pleased that this company agrees to change its policies and practices so that it no longer discriminates against residents with disabilities.”

Under the terms of the agreement, Retirement Unlimited will pay a total of $107,500 to the complainants and other aggrieved individuals. In addition, Retirement Unlimited will donate $30,000 to HOME to support advocacy for individuals with disabilities, and donate an additional $30,000 to a HUD- approved organization that promotes education and assistance to persons with disabilities in Virginia. Retirement Unlimited will also adopt a revised “Power Mobility Devices Policy” for its six properties in Virginia that prohibits residents who use such devices from being charged extra security deposits or being subjected to other forms of discrimination, and provide training to its employees about the new policy.

Persons who believe they have experienced discrimination may file a complaint by contacting HUD’s Office of Fair Housing and Equal Opportunity at (800) 669-9777 (voice) or (800) 927-9275 (TTY). Housing discrimination complaints may also be filed by going to www.hud.gov/fairhousing, or by downloading HUD’s free housing discrimination mobile application, which can be accessed through Apple devices, such as iPhone, iPad, and iPod Touch, as well as Android devices. Caution: GSE reform could have serious unintended consequences May 26, 2015

Guest blog by former Ginnie Mae president Joseph Murin

The role of the government sponsored enterprises, Freddie Mac and Fannie Mae, in combination with government-owned corporation Ginnie Mae, has been fairly straightforward for decades: ensure that capital flows freely to American mortgage lending markets so that the American dream remains achievable for all.

While most now consider the GSEs to provide an implicit guaranty, as opposed to Ginnie Mae’s explicit guaranty, all three play a critical role in making mortgages available to many Americans who otherwise might not be able to afford a home.

The thought of dramatically altering that guarantee, or worse, eliminating it, is one that is extremely worrisome to me.

Let’s consider the role of Ginnie Mae (with which I am most familiar). Chartered in 1968 for the express purpose of making homes more affordable for Americans with what would now be considered “riskier credit profiles,” Ginnie Mae has stayed true to that mission throughout. In fact, Ginnie Mae began to grow through the Great Recession, as private markets and the GSEs tightened their standards in response to what has often been called the “Subprime Meltdown.”

Many now believe that, without the federal guarantee behind Federal Housing Administration, Department of Agriculture and Veterans Administration mortgages, the economy may have plummeted even further than it did.

In 2014, the Urban Institute supported this premise.

“Without Ginnie Mae and its full-faith and credit guarantee the government insurance programs could not have played such a critical counter-cyclical role and the downturn in home prices would have been much more severe,” Urban Institute’s Housing Finance Policy Center Director Laurie Goodman wrote in 2014. “If investors, overseas and domestic, private and public, had been unwilling to take interest rate risk through Ginnie Mae and GSE securities, the real estate market would have sunk much further.”

When the GSEs were placed into the conservatorship of the Federal Housing Finance Agency in 2008, their future role in the overall mortgage market was questioned. We’ve heard ideas ranging from minor tweaks to absolute phase out of the two giants. They’ve also ranged from mild to outlandish.

But let’s consider just how important the GSEs and Ginnie Mae are to our housing infrastructure.

As of late 2014, almost 80% of new mortgages were backed by some kind of government guarantee. To simply eliminate such a cornerstone would be no different than tearing down 80% of a building’s foundation.

The assumption that, even with time, private markets would simply pick up the role of the GSEs and Ginnie may or may not be accurate. But what if it is wrong? The economic chaos would be astronomical, and simply picking up the pieces of the infrastructure we had just replaced would be no mean feat.

I, personally, am a strong supporter of free market principles. At times, I believe some boundaries have been overstepped in the name of regulating mortgage lending and protecting the consumer. But we also must balance reality with our ideals. Without the government guarantee, our housing industry would be left to the whims of a private market. We’ve already seen what private markets tend to do in times of economic crisis or hardship: they hunker down and mitigate risk.

Although the argument rages as to whether or not tighter mortgage lending standards have limited consumer access to credit, there can be no doubt that most mortgages are originated with the intention of selling them onto the secondary market. Thus, they are originated under the terms of GSE or Ginnie Mae standards. It would seem that even the free market has been flowing toward the security of the government guarantee.

Now consider what would happen if those delivering the implicit or explicit government backstop were hamstrung or even removed from that mission. Mortgage lending would become much riskier for banks and non-bank lenders. Historically, bankers don’t like risk. Nor do many investors.

Without a relatively uniform standard of underwriting and origination standards (which we have now with the GSEs and Ginnie), investors, too, would likely become more skittish when approaching mortgages for investment. We’d likely see the number of lenders available to consumers and homebuyers — especially smaller lenders — dry up as risks increase and profitability declines (because of the decrease of investment capital).

The cost of a mortgage would likely go up. The result to the consumer would be anything but positive. Perhaps the consumer would be safer in a limited number of respects; but that consumer would also, in many cases, be frozen out of the home-buying market.

Do the GSEs and Ginnie Mae need some changes? Perhaps. Should we endeavor to protect the taxpayer from the potential of future mortgage industry collapse and government bailouts? Of course.

But before we throw the baby out with the bathwater, let’s take a moment to recognize that the overall benefit far outweighs the harm and risk we can experience with these entities. Unless we, as a nation, have turned our back on the American Dream and the ideal that most (if not all) Americans should have access to affordable homes, we need to maintain, in large part, the role of the GSEs and Ginnie in that dream.