What to expect at HousingWire’s Spring Summit

The focus of the Summit is The Year-Round Purchase Market. Record low rates led to a banner year for mortgage lenders in 2020, and this year is expected to be just as incredible.

Increasing lending and servicing capacity – regardless of rates

Business process outsourcing and digital transformation are proven solutions that more companies in the mortgage industry are turning to. Download this white paper for more.

HousingWire's 2021 Spring Summit

We’ve gathered four of the top housing economists to speak at our virtual summit, a new event designed for HW+ members that’s focused on The Year-Round Purchase Market.

An Honest Conversation on minority homeownership

In this episode, Lloyd interviews a senior research associate in the Housing Finance Policy Center at the Urban Institute about the history and data behind minority homeownership.

Mortgage

House bill would extend VA loans to co-ops

Co-ops are the dominant type of housing in some markets such as New York

A new bill in the House of Representatives would make cooperatively owned units, or co-ops, eligible for mortgages backed by the Department of Veterans Affairs.

Congresswomen Carolyn Maloney (D-NY) and Eleanor Holmes Norton (D-DC) on Tuesday introduced the bill, known as Fair Access to Co-Ops for Veterans Act. It would resurrect a five-year pilot program that expired in 2011 that allowed the VA to guarantee mortgages for co-ops.

Co-ops are the dominant type of housing in some markets such as New York. When you buy a co-op, you’re buying shares in a corporation that entitle you to a proprietary lease for a unit in a building. Typically, new buyers have to be approved by a board of residents who run the co-op.

“In New York City, co-ops are ubiquitous, and our veterans shouldn’t be priced out of these housing options because they’re excluded from the VA’s loan program,” said Maloney. “Wherever veterans want to buy a home – whether in rural or urban areas – they should have equal loan support from the VA.”

During the pilot program, there wasn’t much demand, but that could have been due to the housing crash and recession that began during that time, said Chris Birk, director of education for Veterans United, the largest VA lender.

“There could be a hunger and demand for this, but it’s a question mark at this point,” Birk said in an interview with HousingWire.

Last year, Congress passed a bill that eradicated loan limits for VA-backed mortgages starting on Jan. 1. That might help to boost demand for co-op VA mortgages in New York, where home prices are much higher than most of the U.S., Birk said.

Before the elimination of the loan limit, “anyone buying in New York above that would have been on the hook for a down payment,” Birk said. “That’s a huge factor that changes the conversation as it relates to co-ops.”

The median price of a co-op in Manhattan was $795,000 in the fourth quarter, according to Miller Samuel. That’s almost triple the median sale price of a home, including condominiums and co-ops, for the nation, based on data from the National Association of Realtors.

Most Popular Articles

Do higher mortgage rates mark the end of the refi wave?

As mortgage rates rose over the last week, refi activity fell. But millions of borrowers are still eligible if lenders can get them through the pipeline.

Feb 23, 2021 By

Latest Articles

How lenders can prepare for growing fraud threats

HousingWire recently spoke with Jeffrey Morelli, general manager at Truework, about what lenders can do to prepare for and overcome the growing threat of fraud and data inaccuracy.

Feb 26, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please