- The Consumer Financial Protection Bureau recently released a compliance bulletin regarding Amendment to the Interstate Land Sales Full Disclosure Act. The bulletin provides information to interested parties, primarily developers, regarding the extension of exemption from registration and disclosure requirements of the sale of a condiminium, which is not exempt under other provisions.
- The Federal Transportation Administration (FTA) has released Final Interim Guidance regarding its Capital Investment Grant Program. This guidance provides a greater level of detail with respect to the methods of evaluation used in funding decisions. According to Enterprise Community Partners, “…the incorporation of affordable housing criteria in the evaluation framework has been effective in promoting such coordination. The revised guidance reaffirms those elements and makes two minor adjustments to the affordable housing portion of the land use rating criteria: project sponsors will now have more flexibility in certifying affordable housing data, and transit projects reaching counties with more affordable housing will receive a scoring bonus.”
Author Archives: Serenna McCloud
Friday’s Government Reports
- The Consumer Financial Protection Bureau’s (CFPB) “Leveraging technology to empower mortgage consumers at closing” found that consumers would benefit from electronic closings. Results indicate that those consumers who completed a closing on an electronic platform had a superior experience with regard to understanding, efficiency, and feeling empowered compared to borrowers who used paper forms.
- The Federal Housing Finance Agency (FHFA) released its monthly interest rate survey for June 2015. The average interest rate was up 10 basis points from 3.75 to 3.85% from may to June. Many lenders use this rate to reset the interest rate on some ARMs.
Thursday’s Advocacy & Think Tank Round-Up
- MakeRoom’s campaign to bring awareness to the housing affordability concert by arranging concerts on the first (when rent is due) in the homes of families struggling to pay the rent. On August 1st Nashville an single mom, Marlene and her family were serenaded by the country music rock band John and Jacob. Marlene is an adjunct professor who spends 75% of her income on rent.
- The Urban Institute’s Housing Finance at a Glance Monthly Chartbook, contains a wealth of information on today’s real estate market including size and financing trends.
Tuesday’s Regulatory & Legislative Round-Up
- New York City Mayor Bill De Blasio recently unveiled an Inclusionary Housing Program which allows developers to build beyond existing restrictions if they create permanent affordable units, this is one of the most aggressive programs in the country – as many as one in four new apartments will include permanently affordable and low income units (available as rental or ownership programs).
- While the U.S. Congress is in recess advocacy groups are encouraging members to get in touch with their representatives who will be considering tax extenders and other affordable housing legislation when they return.
Thursday’s Advocacy & Think-Tank Round-Up
- Enterprise Community Partner’s and other affordable housing advocates have launched #CapsHurtCommunities, a campaign to raise spending caps imposed and restore critical funding. They are urging organizations and concerned citizens to reach out to Congress while the members on recess – asking them to support tax extenders legislation and fully fund affordable housing. The Summer Advocacy Tool Kit contains a variety ideas for creating awareness around the issue.
- The Make Room Campaign’s mission is to raise awareness around the rent affordability crisis currently being played out in homes across the U.S. The Campaign has a novel approach – celebrity concerts, held on the 1st, (when the rent is due) in rent burdened living rooms. In July, Grammy Award winning Artist Timothy Bloom held a concert in the Paterson NJ (See, NJ Factsheet) home of the five member Montgomery family, which spends more than half its income on rent and despite holding three jobs, is behind on bills and cannot afford a vehicle. Last Month’s concert was in the Los Angeles, CA (See, CA Factsheet) home of the Duartes where Carly Rae Jepson performed her hit song, “Call Me Maybe.”
- National Association of Realtors’ Pending Home Sales Index took a dip in June, after five months of increases. on the other hand, when compared to June of 2014, it reflects an 8.2% increase.
Tuesday’s Regulatory & Legislative Update
- The Federal Housing Administration (FHA) released a final notice, The Small Buildings Risk Sharing Initiative invites private sector lenders to partner with the FHA to provide long term fixed rate capital to small building owners with mortgages of $3 – 5 million. Lending under this initiative will be limited to properties which are willing to meet affordability requirements. The FHA will guarantee 50% of the mortgages. The FHA is also pursing a change to Section 542(b) of the Housing and Community Development Act of 1992 to allow SBRSI lenders to access capital through Ginnie Mae and to authorize securitization of the loans. In the mean time lenders can access low interest long term capital through the U.S. Treasury’s Federal Financing Bank.
- The Mayor of Seattle has released an Action Plan to address the affordability crisis in that city, where 15-20% of the population is severely rent burdened and minorities are disproportionately impacted. The Mayor’s goal is to create 50,000 units over the next 10 years.
- The U.S. Department of the Treasury has proposed a rule which, “provides for the enforcement of Title VI of the Civil Rights Act of 1964…to that end no person in the United States shall on the grounds of race, color, or national origin be denied participation in, be denied benefits of, or be otherwise subjected to discrimination under any program or activity that receives Federal financial assistance from the Department of the Treasury.” The rule, open for comment until September 11, provides guidance to recipients and provisions for “consistent and appropriate enforcement.” The proposed ruled covers 12 programs including the Community Developments Financial Institutions Fund (CDFI).
Friday’s Government Reports
- The U.S. Census Bureau and U.S. Department of Housing and Urban Development jointly released the New Residential Construction statistics for June 2015 – which shows sizable increases in housing starts (compared to June 2014) for multiple unit construction, particularly in the Northeast (up 159.6% for 5 units or more), South (up 10.4% overall) and the West (up 27.4%).
- The Federal Housing Finance Agency’s (FHFA) House Price Index (HPI) for May 2015 is up .4% from April 2015. The FHFA HPI is calculated using home sales price information from mortgages sold to or guaranteed by Fannie Mae and Freddie Mac. From May 2014 to May 2015, house prices were up 5.7 percent. The U.S. index is 1.8 percent below its March 2007 peak and is roughly the same as the April 2006 index level.
- The Consumer Financial Protection Bureau’s Monthly Complaint Report reveals that the most complained about product is the Mortgage while the biggest increase in complaints has been in the debt collection sector. The report details complaint data by company, region and financial product.
