REFinBlog

August 25, 2017

Friday’s Government Reports Roundup

• The Federal Housing Finance Agency (FHFA) examined housing prices for the second quarter of this year. Across the U.S., housing prices rose 1.6% during the second quarter. Though this is a small increase, over the past year, housing prices have risen a total of 6.6%. Further the study found that housing prices rose in 48 states in the second quarter of 2017.
• The Federal Reserve Bank of Chicago examined the “effects of the 1930’s Home Owners’ Loan Corporation (HOLC) residential security ‘reading’ maps.” The Federal Reserve Bank of Chicago, to no surprise, found that “lower graded areas of the HOLC” encountered more racial segregation which peaked between the 1960’s and 1970’s. Further, the study concluded that the use of these maps altered the dynamic of Chicago communities for years to come although the sole use of the maps were not the cause of segregation.

August 24, 2017

Thursday’s Advocacy & Think Tank Roundup

• Data resubmission guidelines were released by the Federal Financial Institution Examination Council (FFIEC). These guidelines stem from the Home Mortgage Disclosure Act (HMDA). An institution that experiences errors on more than 10% of their applications, must resubmit the entire Loan Application Register (LAR). New guidelines like these seem burdensome, but will likely lead to better oversight of the application process.
• One may believe military families do not encounter the woes of the housing market; however, the unlikely group is highly impacted by affordable housing. Due to the mandates of their stations, families in the military are not afforded the autonomy of living in the city that most meets their family needs. As a result, they struggle to find housing and due to their low wages and waste their housing stipends on places unsuitable for their family.

August 23, 2017

Wednesday’s Academic Roundup

• Credit Growth and the Financial Crisis: A New Narrative, Albanesi, Giorgi, and Nosal
• The Time-Varying Price of Financial Intermediation in the Mortgage Market, Fuster, Lo and Willen
• Information Immobility and Learning in Commercial Real Estate Markets, Agarwal, Sing and Wing
• Effects of Macroprudential Policy on Systemic Risk and Bank Risk Taking, Andries, Melnic, and Mutu
• Current Social Obligations of Land Rights on Chinese State-Owned Land, Huang

August 21, 2017

Tuesday’s Regulatory & Legislative Roundup

• The challenges associated with student loans are not improving says the Consumer Financial Protection Bureau (CFPB). Borrowers owing $50,000 or more have tripled in the past 12 years. Furthermore, many of these borrowers are not making use of income based plans. If borrowers took advantage of the plan, he or she would reduce the amount being payed out while remaining current on their loans.
• The city of San Antonio created a housing task force due to the city’s issue with gentrification and affordable housing. The task force intends to create a plan that will outlast the current mayor’s eight year term and reach the next generation. Mayor Nirenberg tasked Lourdes Castro-Ramirez to lead the task force.

Monday’s Adjudication Roundup

• A New Jersey attorney attempted to disqualify the attorney from representing a condo association. The attorney’s representation stemmed from insurance coverage during Superstorm Sandy. The opposing attorney accused its adversary of allowing too much time to lapse before filing their motion.
• In California, a family experienced a “Kafakaesque nightmare,” foreclosure with Bank of America. During the foreclosure proceedings the family experienced heart attacks and suicide attempts. A court hearing approved a tentative $6 million settlement.

August 18, 2017

Friday’s Government Reports Roundup

• The Federal Housing Finance Agency extended the Home Affordable Modification Program (HARP) program until December 2018. This extension comes as no shock because the agency has extended the program a number of times in years prior. Currently, the agency is searching for the best way to bridge HARP with an updated program so as not to hurt the economy and current homeowners.
• In the 2015-2016 school year, approximately 100,000 New York City children were homeless. The Institute for Children, Poverty, and Homelessness predicts that one in seven New York City public school children will experience homelessness during their elementary years and within the past six years roughly 140,000 students experienced homelessness.

August 17, 2017

Thursday’s Advocacy & Think Tank Roundup

• Mortgage rates hit their lowest point since Trump was elected to president. Despite the lower mortgage rates, home seekers are not applying for home loans. In fact, home mortgage applications increased a mere 0.1 percent in the week prior. One may believe any increase is good for the economy; however, at this time last year, home mortgage applications were 22% higher.
• Harvard’s Joint Center for Housing Studies recently analyzed homes and their energy efficiency. The study determined homes are more energy efficient than they were in the early 2000s. For instance, in 2009, most homes built before 1980 were not properly insulated. Today, that is not the case, these same homes have received energy audits and have better energy efficient heating systems.