Housing Finance
Why Lower Interest Rates are Not Boosting the Housing Market
Recent jolts to the economy stemming in part from an intensified trade war with China have worried markets and resulted in a significant decline in interest rates as investors have shifted from equity to bonds. Lower interest rates present an opportunity for the housing market, which has failed so far to respond energetically to this positive development due to prior housing affordability headwinds.
Fed Rate Cut Good for Housing
In a policy change widely expected and good for housing and home building, the Federal Reserve today reduced its key, short-term federal funds rate by 25 basis points to a top rate of 2.25%. The housing sector continues to face affordability headwinds, and today’s action by the Fed will help by reducing borrowing costs.
HUD Suspends Downpayment Assistance Rule Change
HUD issued a notice to lenders on July 23 announcing it is suspending a previously announced rule change that would restrict the operation of downpayment assistance programs beyond state borders.
Rural Housing Service Publishes Final Rule to Encourage Single-Close Loans
A final rule by the Rural Housing Service (RHS) published July 22 in the Federal Register will provide increased flexibility for the agency to facilitate and encourage single-close construction loans, which will stimulate new construction, rehabilitation and homeownership in rural areas.
Trump Signs Bill Into Law that Abolishes VA Loan Limits
President Trump has signed a veterans health bill into law that also abolishes the conforming loan limits on VA loans beginning Jan. 1, 2020 for veterans who do not have an outstanding loan guaranteed by the Department of Veterans Affairs.
Alaska Building Pros Learn the Ins and Outs of Green Building Valuation
A home’s green-building features can be tricky to value appropriately if the appraiser isn’t adequately equipped with the proper knowledge and tools to understand these components and how they impact the value of a home.
CFPB Releases FAQs on Disclosure for Construction Loans
The Consumer Financial Protection Bureau (CFPB) last week published the first set of Frequently Asked Questions on the TILA-RESPA Integrated Disclosure, or TRID Rule, as it applies to construction loans.
House and Senate Introduce Bipartisan Bills to Improve Low-Income Housing Tax Credit
After months of work by NAHB’s Housing Credit Group members, legislation has been introduced in the House and Senate to improve the Low-Income Housing Tax Credit, as well as provide it with additional resources.
FHA Proposes Clarification for Lenders to Increase Program Participation
The Federal Housing Administration (FHA) announced on May 9 that it is proposing several revisions to its lender certification requirements with the goal of providing lenders and servicers greater certainty in how to satisfy the agency’s compliance requirements.
FHA Significantly Cuts Costs for Opportunity Zone Investors
The Federal Housing Administration (FHA) announced today that it is reducing fees to provide greater incentives for multifamily developers to invest in Opportunity Zones across the nation.
