Top markets for affordable renovated housing inventory

Despite the rapidly deteriorating affordability, there is some hope for homebuyers in the form of renovated homes: properties that have been rehabbed into move-in ready condition after being purchased at auction.

HousingWire Magazine: December 2021/ January 2022

AS WE ENTER A NEW YEAR, let’s look at some of the events that we can look forward to in 2022. But what about what’s next for the housing industry?

Back to the Future of Mortgage Lending

This webinar will be a discussion on understanding what’s to come in the future of mortgage lending by analyzing past trends in the industry, evolving consumer behaviors and demographics of the industry’s production capacity.

Logan Mohtashami on Omicron and pending home sales

In this episode of HousingWire Daily, Logan Mohtashami discusses how the new COVID variant, Omicron, will impact inflation and whether or not it will send mortgage rates lower.

MortgageReal Estate

Fannie, Freddie fail Dodd-Frank severe stress test

Would need nearly $100 billion bailout in economic adversity

The Federal Housing Finance Agency released the latest results of the Dodd-Frank Act stress test results for Fannie Mae and Freddie Mac.

Both of the GSEs failed the test, showing they would need a bailout in the event of a severe economic crisis, the stress test results showed.

The 2017 DFAST Severely Adverse scenario is based upon a severe global recession which is accompanied by a period of elevated stress in corporate financial and commercial real estate markets.

The stress test results showed the GSEs would require an additional combined $34.8 and $99.6 billion. While they would still need a bailout, this is an improvement from last year’s $125.8 billion.

Through the second quarter this year, Fannie Mae paid out a total $162.7 billion to the U.S. Treasury, while Freddie Mac paid out a total of $108.2 billion during that same time period.

An article from MarketWatch explains the scenario the stress tests creates:

Under the hypothetical scenario, a severe global recession with “elevated stress” in corporate financial and commercial real estate markets plays out over nine quarters from 2017 to early 2019. GDP would decline as much as 6.50%, unemployment would peak at 10%, and consumer price inflation would decline to about 1.25%.

Additionally, equity prices would decline about 50% even as volatility picks up. Home prices would fall by 25%, and commercial real estate prices by 35%.

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3d rendering of a row of luxury townhouses along a street

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