Housing Finance
More Builders Banking on Small Banks
The portion of residential construction loans has steadily grown for the smaller banks each year since 2012.
NAHB Urges HUD Secretary to Act on FHA Mortgage Insurance Premium Cuts
NAHB sent a letter to HUD Secretary Ben Carson on March 9 urging the secretary to reinstate previously announced premium reductions on FHA-insured mortgages that were due to go into effect on Jan. 27, 2017 but suspended by the Trump administration.
LIHTC Bill Increases Allocations, Fixes 4% Credit Rate
Sen. Maria Cantwell (D-Wash.) and Senate Finance Committee Chair Orrin Hatch (R-Utah) on March 7 introduced the Affordable Housing Credit Improvement Act to strengthen and expand the Low Income Housing Tax Credit.
Conventional Financing Continues to Climb
NAHB economist David Logan looked at the Census Burea’s Quarterly Sales by Price and Financing to determine that nearly 71% of new home sales were financed with conventional loans in 2016: a nine-year high and up from 58.5% in 2010.
Mnuchin Opposes Recap and Release of Fannie and Freddie
Steve Mnuchin, President Trump’s pick to be Treasury secretary, said that he opposed a “recap and release” plan for Fannie Mae and Freddie Mac during his Senate confirmation hearing on Jan. 19.
Recap and release would mean recapitalizing Fannie Mae and Freddie Mac and then releasing the two mortgage giants from government control.
Trump Administration Cancels FHA Mortgage Premium Cuts
President Donald Trump signed an executive order on Jan. 20 cancelling a decision made by the Obama administration to lower Federal Housing Administration annual mortgage insurance premiums by 25 basis points to 0.60%.
FHA Lowers Annual Mortgage Insurance Premiums
In a move that will make home loans more affordable, the Federal Housing Administration announced today that it will reduce the annual premiums most of its borrowers pay on mortgage insurance premiums by 0.25 percentage points from 0.85% to 0.60%. The agency said that the new lower premium rates are projected to save new FHA-insured home owners an average of $500 this year.
Conventional Mortgages Riding High
The share of mortgages financed through conventional products in the third quarter of 2016 rose to 74.1%, the highest level seen since 2008.
A Prudent Way to Deal with Fannie Mae and Freddie Mac
The Bloomberg Editorial Board has outlined a thoughtful approach to transition Fannie Mae and Freddie Mac and attract badly needed private capital back into the marketplace.
Illinois Builder Ed Brady Being Considered as FHA Commissioner
Illinois home builder Ed Brady, who is also the outgoing 2016 NAHB chairman, is among the candidates that the Trump transition team has talked to about becoming the next Federal Housing Administration (FHA) commissioner.
