Items Tagged with 'The Urban Institute'

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  • Urban Institute to FHA: Want more lenders? Clarify False Claims Act enforcement

    Researchers propose ideas for greater clarity regarding False Claims violations
    Many lenders have pulled away from FHA lending in recent years – something the agency has taken steps to address by clarifying underwriting rules. But according to a recent blog post from the Urban Institute, the FHA has not gone far enough to quell lender fears about getting back into the business of FHA lending. The problem? Not enough clarity regarding what qualifies as a violation of the False Claims Act and what the penalties might be.
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  • Urban Institute to FHA: Fix your reverse mortgage servicing problems

    Stop transferring servicing rights, it’s costing millions
    Policymakers have long struggled with how to fix the FHA's reverse mortgage program to prevent it from draining the agency's mortgage insurance fund. But researchers are the Urban Institute have an idea: Fix the program's servicing problems, which they call "one of the biggest drivers of losses in the HECM program." Here's what they suggest.
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  • Urban Institute urges CFPB to release more data on multifamily lending

    Says expanded reporting will encourage more low- to moderate-income lending
    Multifamily lenders are required by the Home Mortgage Disclosures Act to report data to regulators on the number of units in a property, including the number if rent-restricted units. But the CFPB doesn’t share all of this data with the public, and the Urban Institute says this is a roadblock to understanding how well a lender is serving its community.
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  • Bloomberg: Mortgage servicing needs fixing, and here's what should be done

    It's the plumbing of the mortgage industry, and it needs a serious overhaul
    Mortgage servicers are "unsung professionals" who play a crucial role in the U.S. economy, Bloomberg says, but they're not doing their jobs well. But to be fair, it's not all their fault. What's the problem? A recent article in Bloomberg breaks it down, claiming that the mortgage servicing sector needs a serious overhaul. Here's a review of the problems, and some ideas as to what can be done about it.
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  • Small-dollar mortgages are not as risky as most lenders think

    Urban Institute digs into risk associated with this "missing piece of the mortgage market"
    The purchase of a single-family home worth $70,000 or less is rarely financed by a mortgage, and while there are a number of reasons why, one major factor is their perceived risk. A recent analysis by the Urban Institute examined the risk associated with small-dollar mortgages, determining that the perceived risk was "not correct or fair." And, because many lenders shy away from offering financing on lower-valued properties, researchers said many creditworthy Americans are shut out of homeownership in low-cost or distressed communities.
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  • Experts: Home equity is key to solving the country's looming retirement crisis

    But many older homeowners are still reluctant to touch it
    As Baby Boomers continue to retire en masse without sufficient savings to support their later years, it's become glaringly apparent that the country is on the brink of a retirement crisis. But many older Americans do have one major source of wealth at their disposal: their house. And for some, utilizing their home equity through a reverse mortgage could be the answer to their late-in-life money problems, leading some experts to call the HECM program important public policy.
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  • Study assesses long-term financial impact of living in your parents' basement

    More young adults are living with their parents, and it's not improving their homeownership prospects
    The number of Millennials living with their parents has increased 10% in seven years, according to a new study by the Urban Institute, amounting to an additional 5.6 million you adults who are shacking up with their parents. Presumably, those who opt to live with Mom and Dad will be in a better position to purchase their own home eventually, right? Wrong, say researchers, and here's why.
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  • Should reverse mortgages be pulled from FHA's MMI Fund?

    Experts say yes, and here's why
    The FHA’s recent report to Congress on the health of its flagship insurance fund revealed the HECM’s continued drain, renewing calls from some to remove reverse mortgages from the Mutual Mortgage Insurance Fund. The Urban Institute’s Laurie Goodman and Edward Golding explained to HousingWire why separating the two portfolios makes sense.
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  • Urban Institute urges FHA to release more HECM data

    Says researchers need to assess why reverse program is "hemorrhaging"
    A recent report by the Urban Institute highlighted trends affecting FHA's reverse mortgage program, noting that while past changes are starting to have a positive impact, the HECM program is still a drain. It urged the FHA to release more loan-level data so that researchers can better analyze risk factors driving this trend.
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  • Urban Institute: 4 FHA trends to watch in 2019

    These factors could impact performance in the year head
    A recent report by independent think tank the Urban Institute affirmed that the FHA continues to be "strong and profitable" for taxpayers, highlighting four trends to watch in the FHA's mortgage portfolio to gauge the probability of future success.
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