Pulse

HousingWire pulse

Pulse is an invitation-only forum where the most influential housing and mortgage professionals provide expert insight to keep Moving Markets Forward.

[Pulse] Affordable housing issues are stymying the mortgage market, but change is on the way

Federal agencies and lawmakers are finally taking much-needed steps to solve the crisis plaguing the U.S. housing market
It’s now been almost seven years since people started to take notice of the current housing shortage and become angry over the skyrocketing costs for housing. But now we are seeing change in the finance industry and in every level of government, signaling that perhaps, we’ve finally reached a tipping point.
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[Pulse] Here's what New York real estate will look like in the year ahead

Nation's largest real estate market expected to be flat in 2020
With an estimated population more than 20 million, the New York-Northern New Jersey-Long Island Metropolitan Statistical Area is by far the nation's largest metro – nearly 50% larger than the runner-up. That also means that this metro, home to one in 16 Americans, is the nation's largest real estate market. So, what's happening in this market is perhaps a snapshot of things to come for the rest of the nation’s major markets. Sadly, it doesn't look great.
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[Pulse] We need to make LO comp work for everyone. Here's how

This is what I think the CFPB should do to fix LO Comp Rule problems
There are many in the mortgage industry who argue that the entire LO Comp Rule should be scrapped. But such a move would potentially re-open the door to the bad practices of the subprime era, and the divisive debate over this would likely be doomed to failure. Instead, the CFPB could use its existing authority to tweak its LO Comp Rule to fix certain problems. Here's what I think should be done.
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[Pulse] What's an underwriter doing at a marketing conference?

Why every single person in the loan transaction should get involved in marketing
That's the question I was asked at least five times while attending HousingWire's engage.marketing conference in Charlotte, North Carolina, last week. My response: Yes, why not? Marketing applies to the entire mortgage loan origination process, and underwriting is a large piece of customer satisfaction. Here's why I think marketing is the subject matter of every mortgage employee of today and the future.
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[Pulse] Washington needs to rescue community lenders it created

Why strengthening the CDFI program will help solve the mortgage and credit challenges facing underserved communities
Two decades ago, policymakers created Community Development Financial Institutions, or CDFIs, to bring lending to underserved communities. Now, steps must be taken to strengthen the CDFI program as a critical step to solve the mortgage and credit challenges facing this demographic. Here’s what needs to be done, and why taking action should be a no-brainer.
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[Pulse] Were prime borrowers actually the ones responsible for the housing crisis?

MIT research says the crisis was triggered by prime borrowers' housing expectations. Here's what we should learn from this
The role of mortgage-backed securities, rating agencies, prudential regulations, and housing policies have been debated at length and quick conclusions rather than a much-needed empirical evaluation have led economists and market pundits to dub the Great Recession a Subprime Crisis. But a recent paper by MIT researchers says they’re wrong. Here’s why, and what it means for the future.
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[Pulse] We must improve the QM standard, and this is why

With the GSE patch set to expire in less than 2 years, we need reforms that will even the playing field
The industry should pay attention to bipartisan legislation that would permit lenders to move away from outdated, static requirements and instead document borrower income and debt through the government-approved methodologies already in place in the GSE guides or the FHA, VA, and USDA handbooks.
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[Pulse] This state has more depreciating housing markets than any other

Unemployment drives down home prices in this Southern state
In most parts of the country, home prices are appreciating, albeit at a slower pace than before. But in 5% of metros, prices will depreciate up to 1.9% in the coming year. Here is a list of the bottom 10 MSAs, or those with home prices that will depreciate the most in the next 12 months.
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[Pulse] Here's how higher regulatory costs are impeding housing affordability

Regulatory burdens are driving up costs, and it's a problem for the housing market
Despite recent declines in mortgage interest rates, housing affordability continues to be a key concern for homebuyers. Studies show that regulatory burdens significantly elevate the cost of land development and construction, driving up costs that are passed on to the homebuyer. If we as a nation want to ease housing affordability barriers, communities should begin by reducing the regulatory burdens associated with developing land and building homes.
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[Pulse] These 10 markets will see the most home-price growth in the next year

Only 1 major market makes the list
Ten markets will see residential property values rise an average of 7.85% in the next year – more than twice the 3.7% rate projected for the rest of the country. But while this might sound great, the average growth of the top 10 is a half-percent drop from the 8.3% we projected last quarter. This is part of a softening that, while significant, is simply a slowing down of most markets.
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