Sarah Wheeler joined HousingWire in November 2013 as Content Editor, serving HousingWire and HousingWire.com. She was promoted to Magazine Editor in May 2015. Sarah brings extensive experience in both newspaper journalism and marketing.
The level of student debt in the U.S. has spiraled over the last decade to $1.4 trillion, effectively locking out millions of potential homebuyers from the market. Fannie Mae's new programs address specific roadblocks that these borrowers face, providing a jump-start to a whole new generation of homebuyers.
Fannie Mae will soon announce policy changes to address the exploding volume of student debt among potential homeowners, according to sources close to the matter. In November, Fannie Mae announced a new loan option through SoFi that allows homeowners to refinance their mortgage at a lower rate and pay down the balance of an existing student loan. Now, sources say, Fannie Mae is ready to expand that program to other lenders. And that's not all.
Is Elizabeth Warren running for president in 2020? It’s a question that comes up more and more often since the election of Donald Trump in November, and one with serious implications for banks and other financial institutions. That, and more, in your Monday Morning Cup of Coffee.
It’s no secret that President Donald Trump wants to fire the director of the Consumer Financial Protection Bureau, Richard Cordray. So what’s stopping him? According to a Politico article published Monday, Trump thinks Cordray will soon be leaving on his own.
Banks are under cyber attack from every side, including, if you believe the latest claim from the Shadow Brokers hacking group, the National Security Agency. In the case of the NSA, the latest data dump from the Shadow Brokers suggests the NSA’s motive was to surveil banking activity in the Middle East, not steal money, but any breach of security of the global messaging network could have significant consequences.
The number of ways to rob a bank is apparently limited only by the imagination of hackers, which is to say, nearly infinite. Recently, a Brazilian bank fell victim to an entirely new and dangerous form of hacking. And if you don't think that your institution could be next, it might already be too late.
Programs that create homeowners just by helping with down-payment amounts are the lowest-hanging fruit in our industry. These are people with jobs and qualifying income who just need a one-time lift from the government. But that one-time lift is not just beneficial to the new homeowners — the overall housing economy benefits as well, since homeownership begets more homeownership.
CFPB Director Richard Cordray asserts that protecting consumers in financial matters involves too many bad actors trying to do too many bad things to be outlined in specific laws. As it turns out, it sounds like the CFPB might decide to take enforcement action against one particular company if they need to “send a public message of deterrence” to the whole industry. This is ludicrous.
Lots of people, including your friends here at HousingWire, have noted that the mortgage industry is ripe for tech disruption. But buried in all the good news about efficiency, lower costs and borrower satisfaction is the potential for serious job loss. Here's a look at how the technological revolution could impact the financial services industry. All that, and much more, in your Monday Morning Cup of Coffee.
Build to rent allows investors to buy newly built homes and rent them out instead of selling them. Because the homes are new, investors are able to charge higher rent prices and tenants often stay in the home for longer periods of time. But the question remains: Why would builders move into the rental market during a time when homes are selling quickly and at higher prices than any time in the past decade?
Today the average student debt resulting from a four-year degree stands at $30,000. According to a report released by American Student Assistance in 2015, 71% of non-homeowners surveyed who carry student debt say the burden of monthly payments has kept them from purchasing a home. More than half of those say their student debt loads will likely prevent home ownership for another five years.
Currently, institutional investors control approximately 170,000 properties (a relatively small portion of the overall SFR space, which is dominated by smaller investors, and estimated to include 11 to 13 million properties). KBRA reports that 105,000 properties have been included in the 26 single-borrower deals done to date, which suggests there are somewhere north of 60,000 properties that could still be securitized.