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Meeting the Housing Needs of a Changing America
The Mortgage Collaborative – Tucson
February 21-23, 2016
THE STATE OF
HOMEOWNERSHIP
IN AMERICA
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Homeownership is at its lowest level in 48 years
•
The rate of homeownership has dropped fastest in the “Diverse
Communities”.
•
The national homeownership rate is down to 63.7%, a loss from its
peak of 69.2%.
Source: Federal Reserve Bank of St. Louis and the Current Population Survey, Bureau of Census, Washington DC 20233
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First-Time Homebuyers Have Not Returned
Share of first-time home buyers
Normal Range
Source: National Association of Realtors
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Buying is More Affordable Than Renting
Source: www.keepingcurrentmatters.com, May 8, 2015
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DEMAND
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The American Dream of Homeownership Is Still Alive –
Nearly All People Under Age 65 Expect To Buy In The
Future…
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New Households Will Be Diverse
13 million of the 17 million projected new households
between 2010-2025
SOURCE: Updated 2010-2020 Household and New Home Demand Projections, Sept 2010
* Non-Hispanic
Joint Center for Housing at Harvard, US Census – homeownership rates Q2 2013
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DIFFICULTY
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Renters Have Minimal Savings/Wealth –
Need Low Downpayment Loans
Cash Savings (Thousands of dollars)
Total Net Wealth (Thousands of dollars)
Notes: Data for Renters only. Cash savings includes checking, saving, CD and money market accounts.
Source: JCHS tabulations of 2010 Survey of Consumer Finances.
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Years to Save 10% Downpayment
Source: USMI
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SOLUTIONS
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Core Principles To Ensure Affordable
And Sustainable Homeownership
•
Preserve low downpayment 30 year, fixed rate mortgage.
•
Maintain a government guarantee of typical, conventional
mortgage backed securities (not the mortgages themselves)
as well as Ginnie Mae and FHA, VA, RHS.
•
Prohibit predatory lending in the mortgage market by
protecting Dodd-Frank’s protections for consumers.
•
Increase use of private MI to make low downpayment loans
more available (and affordable) and reduce taxpayer risk.
•
Preserve precious government resources (e.g. FHA) for those
who need it most.
•
Increase availability and use of housing counseling.
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Washington DC Housing Policy: the report
card…….
•CFPB
•GSE
– Regulations and Enforcement
policies and practices
•FHA policies
and practices
•The
Future of the GSEs
•Fair
Lending Issues
Housing Goals – Duty to Serve
•Basel III and the coming impact
•SIFI designation / Too Big to Fail – Too Small to Comply
•Affordable
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