Pam Patenaude is the president of the J. Ronald Terwilliger Foundation for Housing America's Families. Patenaude is also the former director of housing policy at the Bipartisan Policy Center. Patenaude served as HUD assistant secretary for Community, Planning and Development during the George W. Bush Administration. She brings more than twenty-five years of experience in housing, community economic development, real estate, and public policy.
The platforms of the two major political parties are a good barometer of the prevailing sentiments of the base of activists in each party. Public opinion polls, on the other hand, provide a broader measure of public attitudes, especially in regard to the nation's attitudes to housing.
With Christmas only days away, it’s time to fire off my “housing wish list” to the North Pole. I know from good sources that Santa and the elves are exceptionally fast workers, so it’s never too late, even when making requests on a subject as complex as our nation’s housing system.
Unless remedial action is taken, rising rents will continue to act as a barrier to homeownership for many families who will be unable to accumulate the funds necessary for a mortgage down payment. Here's why we can't sit around and do nothing about it.
The troubling conditions in housing should be a top-tier issue in the 2016 presidential campaign. Yet, so far this primary season, the word “housing” has barely passed the lips of the presidential candidates of either party. That needs to change and here's why.
The homeownership rate has dropped to the lowest point in 19 years, as families continue to reel from the collapse of the housing market. Looking ahead, tougher underwriting standards and new regulatory requirements are likely to put homeownership out of reach for many and make rental housing the only option.
It’s no secret that fear of put backs continues to have a dampening effect on the housing market. Despite recent efforts by the Federal Housing Finance Agency to put some boundaries around put-back risk, many mortgage originators remain skittish about lending to families with less-than-pristine credit.
A key question is whether a rigid reliance on credit scores, at the expense of meaningful underwriting of the borrower, is worth the price of diminished access to mortgage credit. Does this reliance make sense when the most risky and objectionable products (such as “no doc” loans and “interest-only ARMs”) have been effectively banned from the marketplace?
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.