January 20, 2017
- A paper, titled How Low Can House Prices Go? Estimating a Lower Bound, discusses how in risk management, the credit risk and required capital associated with mortgage assets is often estimated through stress testing where the house price path is an important determinant of the severity of the stress test.
- HUD published an implementation notice for several of the provisions of the Housing Opportunity Through Modernization Act (HOTMA), which passed Congress and was signed into law by President Obama in July 2016. The provisions specifically impact the Housing Choice Voucher and Project-Based Voucher programs. HUD’s notice seeks additional public input on the proposed implementation requirements and future changes to these programs. Comments are due March 20, 2017.
- During his nomination hearing to become HUD Secretary, Dr. Ben Carson said that he would not seek to eliminate rental assistance; however, the future of public housing remains uncertain. The incoming administration will inherit a public housing system with a shortfall of $25.6 billion for much-needed repairs, as well as waiting lists of hundreds of thousands of individuals hoping to find an affordable home. Some housing advocates have concerns regarding the possibility of instituting work requirements and time limits for public housing residents, which would disproportionately burden elderly and disabled public housing residents.