In its August 8 editorial, "Lower the cap on the mortgage interest tax deduction," the Washington Examiner argued that smart, modest reforms to the MID – a $70 billion tax write-off that primarily benefits higher income households – should garner bipartisan support. We agree. The editors, however, miss one key to attracting bipartisan support for MID reform: reinvesting the significant savings into affordable rental homes for people with the greatest needs, through solutions like the national Housing Trust Fund or rental assistance. According to research from the National Low Income Housing Coalition, every state and community across the nation – rural, suburban, and urban – has a severe shortage of affordable rental homes for people with the lowest incomes. Nationally, there are only 35 rental homes affordable and available for every 100 extremely low income renters. Today, 75 percent of the $200 billion Congress spends each year to help Americans buy and rent their homes goes to higher income households through the MID and other homeownership tax benefits. Reinvesting in rental housing solutions would benefit suburban and rural communities that face unique challenges to building and preserving affordable rental housing for their lowest income residents. Progressives committed to addressing growing income inequality and racial inequities should likewise support reforms that make the MID fairer and that increase resources for those with the greatest needs. Any tax plan that doubles the standard deduction must include reforming the MID and reinvesting the savings into affordable rental housing for people with the greatest needs. Now is the time for leaders from both parties to work together to enact sensible mortgage deduction reform and to target the savings to address the growing rental housing crisis facing America's extremely low income families.
Builder Confidence in New Construction Climbs Back Up. Home builder confidence in the new, single-family construction market has climbed back up in the latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The Index reading for August was 68, up four points from July. An above-50 reading indicates more builders have a positive outlook than a negative one. “Our members are encouraged by rising demand in the new-home market,” said Granger MacDonald, chairman of the NAHB, in a statement. “This is due to ongoing job and economic growth, attractive mortgage rates, and growing consumer confidence.” Home builders’ expectations regarding present and expected single-family home sales both rose in August, up four points to 74 and five points to 78, in order, while expected homebuyer traffic rose one point to 49. “The fact that builder confidence has returned to the healthy levels we saw this spring is consistent with our forecast for a gradual strengthening in the housing market,” said Robert Dietz, chief economist at the NAHB. “GDP growth improved in the second quarter, which helped sustain housing demand; however, builders continue to face supply side challenges, such as lot and labor shortages and rising building material costs.” For the latest real estate news and trends, bookmark RISMedia.com. Facebook Comments
Until Debt Do Us Part It’s very common in divorces for one spouse to transfer their interest in the marital home to the other. If both spouses are listed as borrowers on the mortgage, transfer of the property alone will not remove a spouse from the mortgage. And so, until proper steps are taken to clarify financial responsibility for the mortgage, divorce may not be the final and complete separation that a couple was hoping for. This means that the assuming spouse would take over all responsibility for making the mortgage payments. The non-assuming spouse would be released from all liability for repayment or future foreclosure. Similar to assuming the mortgage, refinancing will completely remove the other spouse from all liability. Once a divorce is finalized, and a divorce decree has been issued awarding the property to one spouse, the bank may be willing to allow that spouse to apply for a loan modification without the other. If a loan modification is approved, the other spouse will be completely removed from the mortgage and released from all liability for repayment or future foreclosure. This is all good advice, but those looking at a possible divorce which also potentially involves foreclosure should consult with a licensed attorney who can work with you to take advantage of available options, and help prevent future surprises or conflict. The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker.
How smart is too smart for a smart home technology?. The words digital mortgage and e-closing may just be getting to the mortgage finance world, but the home technology world is light years ahead. This latest innovation, according to the article, reduced the need to buy a bunch of smart technology products and instead purchase one stand-alone sensor to monitor everything. From the article: Gierad Laput, a Ph.D. student at Carnegie Mellon University, says as the Internet of things becomes more ingrained in our daily lives, there are a couple of ways people are turning ordinary homes into smart homes. "One way is basically to buy all the appliances, smart oven, smart dishwasher, smart microwave, smart toaster, all these things," Laput says. The other way is to get sensors, and put them on everything you want to monitor. This latest innovation from Laput and his team involves just one sensor that could monitor a whole range of activity in a room, the article stated. From the article: "Surveillance is now the business model of the Internet. Companies make money spying on you," says Bruce Schneier, an Internet security expert and the chief technology officer at IBM's cybersecurity arm. "We're building a world-size robot without even realizing it," he says.
Amending Federal Mortgage Disclosure. Effective October 10, 2017, the federal mortgage disclosure requirements under the Real Estate Settlement Procedures Act and the Truth in Lending Act that are implemented in Regulation Z will be changed to clarify technical amendments. The rule, announced Friday, August 11, will also create tolerances for the total of payments, adjusts a partial exemption predominantly for housing finance agencies and non-profits, extends coverage of TILA-RESPA integrated disclosure requirements, and provides guidance on sharing the integrated disclosures with various parties involved in the mortgage origination process. Though it goes into effect October 10, mandatory compliance begins October 1, 2018. In October 2015, integrated disclosures were issued by the Consumer Financial Protection Bureau (CFPB) to be in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act. Additionally, they proposed amendments to the integrated disclosure requirements on July 28, 2016. Now, the CFPB is issuing the final rule to memorialize past guidance and make additional refinements and amendments. The final rule will create tolerances for the total of payments, adjust a partial exemption that mainly affects housing finance agencies and nonprofits, provide a uniform rule regarding application of the integrated disclosure requirements to cooperative units, and provide guidance on sharing disclosure with various parties involved in the mortgage origination process. “For the reasons discussed in the section-by-section analysis of § 1026.19(e)(4)(ii). “The Bureau is issuing a new proposal, concurrent with this final rule, that would address this issue.” To view the full rule, click here.
More millennial homebuyers are obtaining conventional financing over FHA financing, relying less on government-backed loans, according to the latest Ellie Mae Millennial Tracker™. Conventional and FHA—the most common types of mortgage loans for millennials—comprised 63 percent and 32 percent of millennial loans, respectively, in June. “Conventional and FHA loans make up the vast majority of loan types among millennials, and tend to track in cycles,” said Joe Tyrell, executive vice president of Corporate Strategy for Ellie Mae, in a statement. “The numbers for June show us that, after a one-year high at 36 percent of all closed loans in February and March, FHA loans have been steadily decreasing for the past four months. Conventional loans are rising, from 60 percent in March to June’s 63 percent, indicating that, at least at the moment, millennials are slightly more able to afford a house without government guarantees. Alternatively, this also demonstrates a potential opportunity for greater borrower education on FHA and other loan options available.” The average amounts of mortgage loans made to millennials in June were highest in San Jose-Sunnyvale-Santa Clara, Calif. ($598,606, on average), as well as in San Francisco-Oakland-Hayward, Calif. ($543,851), Los Angeles-Long Beach-Anaheim, Calif. ($436,967), Boston-Cambridge-Newton, Mass.-N.H. ($364,767), and Washington, D.C.-Arlington-Alexandria, Va. ($432,722). The share of mortgage loans made to millennials were highest in Muscatine, Iowa; Watertown, S.D. ; Frankfort, Ind. ; Oshkosh-Neenah, Wis.; and Quincy, Ill.-Mo. For the latest real estate news and trends, bookmark RISMedia.com.
9 Truly Strange Things Found at Garage Sales. They're also fun to attend since you never know what you'll find! Bog Monster If you're looking to add a bit of excitement to your bathroom but can't afford a sunken tub with spa jets, maybe this Bog Monster will do the trick. Just the thing to scare your kids away from using the potty forever! miracle bread stamper While stories abound of people insisting they saw a vision of the Virgin Mary burned in their toast, if you want to up the odds that you'll be next, this Holy Toast! Is it worth the 50 cents to find out? It was posted on Facebook by a garage sale hunter who felt it might be perfect for "those who need a place for everything." A Reddit user posted this pic to WTFgaragesale and was impressed to find that it was priced at just $15. Not-quite-new shampoo When you go to a garage sale, it's a given that not all items will be brand-new, but you don't expect to find already-been-used personal care products. I'll buy that," wrote Reddit user Reptomin.
Where to Find Private Lenders to Fund Your Investments. With 154 million workers in America, that means more than 30 million Americans have more than $100,000 in their retirement account, being shaken around by the stock market or collecting low fixed returns from CDs, annuities, savings accounts, or other conservative investments. These individuals are in your grocery line, at your church, part of your local civic club, in your family. Anyone with a good chunk of money tied up in IRAs, savings accounts, or under a mattress could be a private lender. You’ll want to find individuals who are easy to work with and understand that there is risk. Related: How I Find Private Money Lenders to 100% Fund My Deals (& How You Can, Too) How to Recognize Lenders But how do you recognize these lenders? First, you must go to where private lenders might be. Attend your local real estate club. This is the most crucial part of the entire process, so let’s focus on “the ask.” Related: 7 Truths About Private Money That Will Help You Raise Capital Drum Up Interest in Casual Conversation I previously shared a strategy I like to use: “When talking with people about your business, it’s a good idea to say something like, ‘So, if you know anyone who’s interested in lending on deals like this and working with me, definitely give them my number.’ This opens up the conversation so they can say, ‘You know, I might actually be interested in something like that’ or ‘I know a guy who very well might be interested.’ Either way, the seed has been planted, and you didn’t come across as begging for money—and you may just find some really valuable clients.” Of course, when you are just starting out and don’t have a brand to build, this can be challenging. What strategies have worked for you when raising private money?
Freddie Mac economist: If housing is affordable, why is homeownership out of reach?. Despite housing affordability being near-record highs, homeownership still feels completely out of reach for many people, Sean Becketti, Freddie Mac vice president and chief economist, stated in a blog. Becketti referenced how the National Association of Realtors’ Housing Affordability Index currently sits near-record highs, and yet most news headlines talk about an affordability crisis in the country. According to the latest report from CoreLogic, the property information and analytics provider, home prices increased 6.7% from June 2016 to June 2017 and are forecasted to continuing increasing. Houses are hard to find The limited supply of available homes increases the perception that homes are unaffordable. However, this growth will be limited if homebuilders don’t start to produce homes buyers are calling for. “The market for new homes is facing a growing imbalance between what buyers want and what homebuilders are producing,” said Tian Liu, Genworth Mortgage Insurance chief economist. Borrowers are uncertain if they can qualify for a mortgage The HAI tells only part of the story—it measures whether the median-income family has sufficient income to comfortably cover the monthly mortgage payment on the median-price house. But there are other qualifications as well. Borrowers should talk to a lender in order to see what they qualify for.