Mortgage rates are insanely high Right now but if you need to refinance for whatever reason or purchase I can save you a lot of money and I’m still breathing.
Reply back to this email for inquiries please.
September 27, 2022
July 5, 2022
Will mortgage rates hit 7% in near future? Here’s what the chief economist of the National Association of Realtors says about that
Mortgage rates have been on a steady climb upwards: While they started the year at around 3.5% for a 30-year fixed-rate mortgage, they’ve since climbed above 6%, Bankrate data shows. And some pros say that upward march could continue. (You can see the lowest rates you may qualify for here.)
“There’s not much reason to expect rates to drop in the near term,” says Zillow senior economist Jeff Tucker, who adds that it’s very hard to predict exactly where rates will land. But does that mean rates will hit 7% soon?
National Association of Realtors (NAR) chief economist Dr. Lawrence Yun says he thinks rates may settle within the range of 6.3% to 6.5% in July, and could then go even higher. “A recession can dampen consumer confidence even for those with financial capabilities to buy a home. The housing market is sensitive to changes in mortgage rates and if somehow inflation turns ugly and the Fed has to be even more aggressive, then mortgage rates could top 7% and actually halt home price gains,” says Yun.
And Greg McBride, chief financial analyst at Bankrate, notes that until we know inflation has peaked, mortgage rates probably won’t either. Even with the most recent 75-basis point hike from the Fed, signs are pointing to additional aggressive rate increases following the Federal Open Market Committee (FOMC) meetings in late July and September. “While there is always the possibility rates may level off or fall later in the year depending on the Fed’s inflation projections, as long as inflation remains high, mortgage interest rates will continue to rise. By some estimates, the average 30-year fixed rate has already exceeded 6% and the Fed’s semiannual monetary policy report offered a guide of 4% to 7% given the current economic conditions. Whatever the exact increments are, buyers should expect to see interest rates continue to rise in the near future,” says Steve Reich, COO of Finance of America Mortgage. (You can see the lowest rates you may qualify for here.)
Of course, there will be fluctuation in rates, and for her part, Realtor.com chief economist Danielle Hale expects that we may see some pullback or settling in rates after the big surge mid-June (where rates climbed above 6%). “In general, the trend for mortgage rates is likely to be higher, so I expect mortgage rates to be not far from their current range, with the risk of moving higher,” says Hale. The next Fed meeting is July 27 and that has the potential to cause volatility in mortgage rates. “After the Fed’s June meeting, investors are expecting another big hike in July, so the bar is raised higher,” says Hale.
June 1, 2022
3 reasons to get cash from your home
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May 23, 2022
Housing Inventory May 23rd Update: Inventory UP 8.2% Week-over-week
Inventory usually declines in the winter, and then increases in the spring. Inventory bottomed seasonally at the beginning of March 2022 and is now up 43% since then.
Click on graph for larger image in graph gallery.This inventory graph is courtesy of Altos Research.
As of May 20th, inventory was at 344 thousand (7-day average), compared to 318 thousand the prior week. Inventory was up 8.2% from the previous week.
Inventory is still very low. Compared to the same week in 2021, inventory is up 6.4% from 324 thousand, however compared to the same week in 2020, and inventory is down 52.5% from 724 thousand. Compared to 3 years ago, inventory is down 63.3% from 938 thousand.
Inventory is still very low. Compared to the same week in 2021, inventory is up 6.4% from 324 thousand, however compared to the same week in 2020, and inventory is down 52.5% from 724 thousand. Compared to 3 years ago, inventory is down 63.3% from 938 thousand.
Credits: Mortgage news daily
March 19, 2022
Federal Reserve approves first interest rate hike in more than three years, sees six more ahead
The Federal Reserve on Wednesday approved its first interest rate increase in more than three years, an incremental salvo to address spiraling inflation without torpedoing economic growth.
After keeping its benchmark interest rate anchored near zero since the beginning of the Covid pandemic, the policymaking Federal Open Market Committee said it will raise rates by a quarter percentage point, or 25 basis points.
That will bring the rate now into a range of 0.25%-0.5%. The move will correspond with a hike in the prime rate and immediately send financing costs higher for many forms of consumer borrowing and credit. Fed officials indicated the rate increases will come with slower economic growth this year.
Along with the rate hikes, the committee also penciled in increases at each of the six remaining meetings this year, pointing to a consensus funds rate of 1.9% by year’s end. That is a full percentage point higher than indicated in December. The committee sees three more hikes in 2023 then none the following year.
The rate rise was approved with only one dissent. St. Louis Fed President James Bullard wanted a 50 basis point increase.
The committee last raised rates in December 2018, then had to backtrack the following July and begin cutting.
In its post-meeting statement, the FOMC said it also “anticipates that ongoing increases in the target range will be appropriate.” Addressing the Fed’s nearly $9 trillion balance sheet, made up mainly of Treasurys and mortgage-backed securities it has purchased over the years, the statement said, “In addition, the Committee expects to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities at a coming meeting.”
Fed Chairman Jerome Powell at his post-meeting news conference hinted that the balance sheet reduction could start in May, and said the process could be the equivalent of another rate hike this year.
WATCH NOW
The indication of about 175 basis points in rate increases this year was a close call: The “dot plot” of individual members’ projections showed eight members expecting more than the seven hikes, while 10 thought that seven total in 2022 would be sufficient.
“We are attentive to the risks of further upward pressure on inflation and inflation expectations,” Powell said at the news conference. “The committee is determined to take the measures necessary to restore price stability. The U.S. economy is very strong and well-positioned to handle tighter monetary policy.”
Officials also adjusted their economic outlook on multiple fronts, seeing much higher inflation than they expected in December and considerably slower GDP growth.
Credits:
March 12, 2022
Mortgage Applications Down 13%
Credits: CNBC
- Total mortgage applications decreased 13.1% last week to the lowest level since December 2019
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 4.06% from 4.05%
- Applications to refinance dropped 15% weekly and were 56% lower than one year ago.
A “for sale” sign in front of a home that Zillow shows has a pending sale of 750,000 dollars on February 18, 2022 in Miami, Florida.
Joe Raedle | Getty Images
Climbing mortgage rates are hitting both potential homebuyers and refinance candidates. Total mortgage applications decreased 13.1% last week to the lowest level since December 2019, according to the Mortgage Bankers Association. Applications to refinance dropped 15% weekly and were 56% lower than one year ago.
“Higher mortgage rates have quickly shut off refinances, with activity down in six of the first seven weeks of 2022,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 4.06% from 4.05%, with points rising to 0.48 from 0.45 (including the origination fee) for loans with a 20% down payment.
Those higher mortgage rates combined with high prices and low inventory pushed applications to purchase a home down 10% weekly and 6% lower than one year ago. This was the third straight week of declines for purchase applications.
The average purchase loan size in the MBA weekly survey didn’t increase, but at $450,200, it stayed very close to the survey’s record high of $453,000, which was hit the week ended Feb. 11.
Home prices have been climbing steadily and didn’t let up in 2021. The S&P CoreLogic Case-Shiller Home Price Index was released Tuesday, and 2021 registered the highest calendar-year increase in 34 years, according to Craig J. Lazzara, managing director at S&P DJI. Prices nationally were up 18.8% in 2021 versus a 10.4% gain in 2020.
Rising mortgage rates will pose a challenge for some buyers, likely leading to less demand. Lazzara predicts that price growth will soon slow in reaction to higher rates.
“We have previously suggested that the strength in the U.S. housing market is being driven in part by a change in locational preferences as households react to the COVID pandemic,” Lazzara said. “More data will be required to understand whether this demand surge simply represents an acceleration of purchases that would have occurred over the next several years rather than a more permanent secular change. In the short term, meanwhile, we should soon begin to see the impact of increasing mortgage rates on home prices,” he said.
Inflation Accelerates in February as Energy Prices Jump, but Labor Market Indicators Remain Strong
Credits: Fannie Mae Housing Wire
- The Consumer Price Index (CPI) increased 0.8 percent in February and 7.9 percent on an annual basis, the fastest in 40 years, according to the Bureau of Labor Statistics (BLS). Energy prices rose 3.5 percent over the month, led by a 6.6 percent jump in gasoline prices as oil prices increased. In part due to these higher oil prices, food at home prices rose 1.4 percent, their largest monthly gain since April 2020. Excluding food and energy, core prices rose 0.5 percent over the month and 6.4 percent annually, also the fastest rate since 1982. New vehicle prices increased 0.3 percent after being flat in January, while prices for used cars and trucks declined 0.2 percent. Shelter costs were up 0.5 percent over the month and 4.7 percent over the year, the fastest annual rate since 1991. Rent of primary residences increased 0.6 percent and owners’ equivalent rent (OER) was up 0.4 percent for the sixth consecutive month. On an annual basis, rent was up 4.2 percent and OER increased 4.3 percent. Prices in the travel/hospitality industry also increased, with airline fare up 5.2 percent and lodging away from home increasing 2.5 percent.
- The National Federation of Independent Business (NFIB) Small Business Optimism Index declined 1.4 points to 95.7 in February, its lowest level since January 2021. Only 19 percent of firms on net reported plans to increase employment, a decline of 7 percentage points and also the lowest level since January 2021. On net, 68 percent of firms are raising average selling prices, an increase of 7 percentage points and a series record, while the percentage of firms raising worker compensation fell 5 points to 45. The net percentage of firms planning on raising selling prices and worker compensation in the future each ticked down 1 percentage point to 46 and 26, respectively. Twenty-six percent of firms rated inflation as their single most important problem, a record since the monthly survey started in 1986.
- The Job Openings and Labor Turnover Survey (JOLTS) showed that job openings declined by 185,000 but remained at the second highest level in series history at 11.3 million in January, according to the BLS. Openings in leisure and hospitality fell 314,000 to 1.7 million while openings in manufacturing increased 109,000 to 855,000. Openings in construction increased by 21,000 to 380,000. Quits fell for the second consecutive month but remained elevated at 4.3 million.
- Consumer (non-mortgage) credit outstanding increased by $6.8 billion in January, according to the Federal Reserve Board. Revolving credit (largely credit cards) declined by $219 million, while non-revolving credit (largely auto and student loans) increased by $7.1 billion.
- The real goods U.S. trade deficit widened by $6.4 billion in January to a series record, according to the Census Bureau. Real exports dropped 3.9 percent while real imports increased 0.1 percent.
Forecast Impact:
The CPI print was largely in line with our expectations and is unlikely to significantly alter our forecast. However, rapidly rising food and energy costs, which together contributed nearly half of the month-over-month gain in February, are likely to be even higher in the March report given the recent surge in oil and agriculture commodity prices related to the Russian invasion of Ukraine. While there is a high degree of uncertainty regarding the conflict and its impact to our forecast, we are likely to upgrade our near- and medium-term inflation expectations based on three factors: 1. The recent jumps in oil prices and agriculture commodities plus the likelihood of higher demand for U.S. natural gas as Europe moves to decrease its dependence on Russian energy; 2. A slower pace or resolution for global supply chain disruptions, and; 3. The general inflationary effects from higher transportation and shipping costs. These higher inflationary pressures will weigh on real incomes, and, therefore, we expect them to weigh on demand. Combined with growing financial market volatility, we expect to downgrade our 2022 GDP outlook based on recent events.
Fortunately, however, unlike the high inflationary period in the late 1970s/early 1980s, the U.S. is currently experiencing one of the strongest labor markets on record, pointing to near-term resilience. While quits have fallen from their recent peaks, the level remains nearly 20 percent higher than the number of quits that occurred in January 2020, indicating workers are confident they can find new, likely better-paying jobs (a Pew research study showed 63 percent of workers who quit their jobs in 2021 cited low pay as a reason for leaving). That’s consistent with job openings remaining near record highs. Given high inflation and a strong labor market, we continue to expect the Fed to begin hiking rates at their meeting next week.
Although business optimism declined in February, we haven’t yet seen a major pullback in business activity from other indicators. Further, the NFIB survey hinted that some future inflationary pressures may be easing modestly, as businesses indicated fewer planned price and wage increases (however this data point preceded the Ukraine conflict).
November 9, 2021
UPDATED COMPANY LICENSE
(NMLS) Nationwide Mortgage Licensing System
- Wholesale Mortgage Broker Michael James Hansen:344532
(CDRE) California Department of Real Estate
- Broker:01885141
November 1, 2021
FHFA to permanently allow desktop appraisals: How can it make the mortgage process easier?
The Federal Housing Finance Agency (FHFA) Acting Director Sandra Thompson announced at the Mortgage Bankers Association (MBA) conference in San Diego that it will allow lenders to use desktop appraisals for conventional loans. These alternative valuation products will improve the homebuying process for many borrowers.
During the COVID-19 pandemic, the FHFA began allowing for more flexibilities, such as desktop appraisals, which means an appraiser can perform the appraisal valuation from their desktop without a physical inspection of the property. But what began as a temporary alternative during stay-at-home orders is now a permanent option.
"When it comes to ‘alternative appraisal methods,’ the spectrum of products really varies by the level of expertise of the person involved in the valuation, as well as the level of scrutiny in the inspection/analysis process," said Brian Zitin, CEO of Reggora, a tech company providing services to lenders and appraisers. "On one end of the spectrum is an AVM, or automated valuation model, where no human is involved and there is no inspection of the property. On the other end of the spectrum is a full appraisal which requires a licensed appraiser to do a complete onsite inspection and full report.
"A desktop appraisal is somewhere in the middle where, although there is no onsite inspection being done, there is a licensed appraiser doing the actual analysis of a valuation," Zitin said. "This makes a desktop appraisal a more robust solution compared to AVM, as it involves human intelligence to manage additional complexities."
If you are interested in buying a home or refinancing your current mortgage as the process becomes easier through this new hybrid appraisal, visit Credible to find a lender and get the best rate for you.
FANNIE MAE AGAIN LOWERS ECONOMIC GROWTH OUTLOOK: WHAT IT MEANS FOR INTEREST RATES
How do desktop appraisals help homeowners & homebuyers?
Desktop appraisals are changing the homebuying and refinance process as technology infiltrates the real estate industry. And this latest update provides several benefits to homebuyers and homeowners looking to refinance their homes.
It takes less time to close
Currently, closing a mortgage typically takes between 30 to 45 days as lenders go through the process to give homebuyers or homeowners the new loan. Mortgage experts say many closing delays stem from appraisals. However, regulatory changes and technology improvements could reduce the time it takes to close a home loan.
Desktop appraisals save money
The current average appraisal can cost anywhere between $200 and $600. This depends on the size of the home, the type of home, location, property condition and how much time is required to appraise it. Since desktop appraisals eliminate the need to visit the site and reduces the work needed from the appraiser, it also decreases cost to consumers, Zitin said.
If you are interested in taking out a mortgage as closing costs decrease, visit Credible to compare multiple mortgage lenders at once and choose the one that has the best interest rate for you. Homeowners who refinance in today’s low interest environment could save hundreds of dollars on their monthly payments.
October 28, 2021
How To Hit The Low Spot
When you think about refinancing, you may ask yourself, when is the best time to lock my rate? How do I find the low spot to get the best deal? I have only been negotiating rates with wholesale lenders for a decade but in my experiance the best choice has always been the same since I started, choose the lowest rate for free, take it right away, and wait for the next rate drop.
We never know when its going to be the lowest and the lowest may not even exist. Rates may just fall until they are negative, that is what our CEO Danielle, President Trump and Warren Buffet have been saying for years. So if thats the case, the best choice would to always have the lowest rate for free.
Call, text or email us now!
Michael call or text 520-523-SOEZ or email 123@soez.tv
Danielle call or text 520-523-7639 or email D@SoEZ.tv
What Is A 7/6 ARM?
7/6 ARM: A 7/6 ARM loan has a fixed rate of interest for the first 7 years of the loan. After that, the interest rate will adjust once every 6 months over the remaining 23 years.
October 13, 2021
Mortgage Rates In October Are Spooky Low, Here Are Some Rates and Costs Available Today
Most people with the best case scanario were able to obtain 2.69% and 2.75% for no cost on a 30 year fixed.
We introduced a new ARM that is amortized for 30 years but only fixed for 7 years, on the 8th year it can adjust down or up every 6 months. Some people recieved rates as low as 2.375% for no cost with this option.
The 15 year fixed was at 2.125% to 2.25% for no points and no fees for many scanarios. There was a day this year that 1.99% was avaialble for free on a 15 year fixed.
On the 10 year fixed, one client from Carlsbad, CA recived 1.99% for 100% free. That was the lowest rate funded for no cost in 2021 with us.
If you would like to know what rate you can get for 0 points, and 0 Lender Cost with a credit covering all the 3rd party cost, making it 100% free, email me at 123@soez.tv or call me at our new EZ number 520-523-SOEZ.
October 1, 2021
Effort To Manipulate The Housing Market
I’m not sure if you’re subscribed to these guys who create videos about the housing market but I thought this was interesting enough to share. It discusses how big companies are buying houses in an effort to manipulate the housing market, change comps, and thus earn more of a profit. The video is only a few minutes long so if you have the opportunity, I’d love your feedback.
August 21, 2021
New Refi Program Aims to Help Lower-income Owners Save
Fannie Mae will launch RefiNow this week, which could help lower-income homeowners save hundreds of dollars a month on their mortgage payments.
The program, which begins June 5, aims to help about 2 million homeowners lower the interest rates on their mortgages. Eligible homeowners could save an estimated $100 to $250 a month, according to the Federal Housing Finance Agency, Fannie Mae’s regulator.
Among the eligibility requirements, homeowners must earn 80% or less of their area’s median income to apply. Borrowers also must have a Fannie Mae–backed mortgage (use the loan lookup tool to find out). Borrowers must be current on their mortgage and have no missed payments in the last six months. The mortgage also can’t have a loan-to-value ratio above 97%, and borrowers’ FICO credit scores must be at least 620.
“Lower-income borrowers typically refinance at a slower pace than higher-income borrowers, potentially missing an opportunity to save on housing costs,” says Malloy Evans, senior vice president and single-family chief credit risk officer at Fannie Mae. “Fannie Mae’s new RefiNow option will help homeowners refinance by removing some of those barriers, improving affordability, and promoting sustainable homeownership.”
Under the program, participating lenders would be required to reduce eligible borrowers’ interest rate by at least one-half of a percentage point. That could be higher, however. Lenders also must waive the adverse market refinance fee for borrowers whose loan balance is no more than $300,000. Lenders must provide a credit of up to $500 if the borrower is ineligible for an appraisal waiver.
Lenders aren’t required to participate in RefiNow.
Freddie Mac will start its own refinance program later this summer.
August 17, 2021
Slap in the face’: Lobbyists fume at Biden eviction reversal
President Joe Biden’s move to reinstate a federal eviction moratorium Tuesday after letting it lapse days earlier marked a huge political loss for the National Association of Realtors and its housing industry allies.
President Joe Biden’s stunning decision to revive the eviction ban in response to intense pressure from progressives has left one of Washington’s most influential business coalitions feeling angry and betrayed on the sidelines of power.
Biden’s move to reinstate a federal eviction moratorium Tuesday after letting it lapse days earlier marked a huge political loss for the National Association of Realtors and its housing industry allies, who each year shower candidates in both parties with millions of dollars in contributions and often get their way in big policy fights.
This time, housing lobbyists said they were frozen out of discussions with the White House on the fate of the ban, which cost property owners billions of dollars a month in losses. More than a dozen industry trade groups found themselves outgunned by an improvised resistance campaign led by Rep. Cori Bush (D-Mo.) and other recently elected progressive lawmakers protesting the ban’s expiration on the steps of the Capitol. House Financial Services Chair Maxine Waters (D-Calif.), who has received tens of thousands of dollars in contributions from the Realtors as one of the top lawmakers on housing issues, dismissed their concerns as she also pushed to revive the eviction prohibition.
The industry felt “whiplash,” said National Association of Home Builders CEO Jerry Howard, whose group includes about 3,000 property managers impacted by the original moratorium.
“It certainly is a slap in the face to the housing industry and to the people that shelter America,” Howard said.
The eviction ban fight, which is now working its way through the courts, was the latest evidence of a leftward power shift among Democrats that has caused some industry groups to struggle with how to defend their members’ interests in Washington. In the case of evictions, lobbyists even had Biden’s word that the ban was done, only to have the president abruptly backtrack.
White House: Biden believes in legality of revised eviction ban
Diane Yentel, a top affordable housing advocate who led efforts to convince Biden to revive the ban, said realtors, home builders and apartment associations wasted millions of dollars and goodwill “in a public fight to allow landlords to evict struggling tenants during a historic and deadly global pandemic.”
“These trade associations painted their members in the worst possible light, all while failing over the last year to achieve their goal of overturning the moratoriums,” said Yentel, president and CEO of the National Low Income Housing Coalition.
The National Association of Realtors — the most powerful housing industry group — is more than 100 years old and occupies a headquarters just blocks from the Capitol. It has some of the deepest pockets in Washington, shelling out nearly $700 million to influence policy since 1998, according to data compiled by OpenSecrets. The spending puts it behind only the U.S. Chamber of Commerce.
With real estate interests in every district, the Realtors group is accustomed to not being so easily dismissed. It successfully pressured lawmakers to preserve a tax deferral benefit known as like-kind exchanges in the 2017 tax reform law, and jammed up an attempt to overhaul National Flood Insurance Program rates for homeowners the same year. Carried interest is still in the tax code despite multiple attempts to kill it, in large part because it’s important to real estate investment partnerships.
The association took the lead on fighting the eviction moratorium after the Centers for Disease Control and Prevention first imposed it in September. About 28 percent of the group’s 1.4 million members rent out property, meaning they would be prevented from kicking out tenants who fell behind on rent under the ban. The CDC argued the moratorium was needed to avert public health risks from people crowding into homeless shelters or doubling up with friends and family during the pandemic.
The moratorium posed a financial hardship for landlords who still had to pay their own bills, including mortgages, property taxes and utilities.
“They're not getting any income, but they're still providing heat, electricity, air conditioning, water," Howard said.
Local chapters of the association sued to block the ban late last year. The industry also successfully lobbied for federal rental assistance that would help make landlords whole and keep renters in their homes, though only a fraction of the $46.5 billion has reached its intended recipients thanks to state and local bottlenecks.
The industry’s fight appeared to bear fruit in late June. After the Biden administration extended the moratorium for what it said was the final time — until July 31 — a Supreme Court ruling triggered by Realtor lawsuits bolstered the legal case against the ban. The high court kept the prohibition in place in a 5-4 decision but conservative Justice Brett Kavanaugh said he was only backing the ruling because of the upcoming expiration date. Kavanaugh warned that he believed the CDC had exceeded its legal authority by imposing the moratorium.
The Supreme Court ruling prompted the Biden administration on July 29 to announce that it would let the moratorium expire three days later and that it was up to Congress to renew it.
The last-minute announcement set off a scramble by House Speaker Nancy Pelosi and other Democratic leaders to pass legislation before representatives left for their August recess.
The push triggered fierce pushback by the housing industry, with 14 groups representing property owners, developers and lenders urging lawmakers to “end the unsustainable nationwide federal restrictions on property operations” and instead focus on accelerating the distribution of rental aid.
The lobbying appeared to pay off, after more than a dozen House Democrats privately resisted legislation extending the ban and stopped it from getting a vote. But the episode also revealed a growing rift between housing lobbyists and top Democrats.
“Now I know that there's a strong lobbying effort, and the Realtors have come, and they have put a strong letter out last night, and some people are simply saying, 'Oh my God, I don't want to cross the Realtors,’” Waters said July 30 as she tried to rally support for the ban.
Why states struggle to get rent relief to tenants
Waters urged her colleagues not to be cowed by interests she knew well. “They're in my committee, I work with them,” she said, referring to her committee's jurisdiction over housing policy.
The Realtors' PAC contributed nearly $2 million to House Democratic candidates in the 2020 election cycle, including $10,000 apiece to Waters and Pelosi.
After the Hill deadlock, the White House stood its ground for a few days. But Biden relented after facing intense pressure from fellow Democrats to reverse course, with progressives led by Bush attracting national attention as they camped out for several days on the Capitol steps to protest the lapse of the ban.
The CDC on Tuesday announced what the administration called a targeted eviction ban, which would apply only to areas with high levels of Covid-19 transmission — currently about 80 percent of counties.
The process left landlords feeling like “pawns” who had been sacrificed to keep the Democratic caucus together, National Apartment Association President and CEO Bob Pinnegar said.
Cindy Chetti, senior vice president at the National Multifamily Housing Council, said the odds were stacked against the industry as outrage over the ban’s expiration snowballed.
“We did lobby a lot, we did step into gear,” Chetti said. “I’m not sure there’s anything else we could have done. ... I feel comfortable that we did everything we could.”
The Alabama and Georgia chapters of the Realtors association sued Wednesday to block the ban. The same groups led the legal challenge against the prior moratorium, prompting the Supreme Court to cast doubt on the CDC’s authority.
A spokesperson for the Realtors pointed to last week’s quashed House vote when asked whether the group saw the new eviction ban as a lobbying loss.
“When House leaders launched an effort to extend the moratorium legislatively last week, our members reached out to Congress and made their voices heard,” Realtors spokesperson Patrick Newton said. “The votes in Congress never materialized, which is why the issue is back in the courts.”
Some housing lobbyists said they were angry about being beaten by progressive upstarts and affordable housing organizers on one of the most critical fights for their members in years. The ban's reimposition threatened to spur big financial losses for landlords, including mom-and-pop property owners who lobbyists pointed out were in nearly every district.
“Those people, for the last year and a half, have kept their tenants housed with their own money,” said Howard, with the home builders association. “And they're being cast as villains in this.”
White House replaces regulator overseeing U.S. mortgage giants following Supreme Court ruling
The White House replaced the regulator who oversees mortgage giants Fannie Mae and Freddie Mac, following a Supreme Court ruling that paved the path for President Biden to put his own regulator at the top of the Federal Housing Finance Agency.
The Biden administration moved Mark Calabria, a Trump appointee and libertarian economist, out of the job. On Wednesday night, the White House appointed Sandra L. Thompson as the agency’s acting director. Thompson previously served as deputy director of the Division of Housing Mission and Goals, overseeing FHFA’s housing and regulatory policy, fair lending and other regulatory matters.
Before joining FHFA, Thompson worked at the Federal Deposit Insurance Corp. During her time there, she oversaw the agency’s enforcement program for risk management and consumer protection during the Great Recession.
In replacing Calabria, the administration signaled it would install someone more aligned with the administration’s housing policies.
“There is a widespread lack of affordable housing and access to credit, especially in communities of color,” Thompson said in a statement. “It is FHFA’s duty through our regulated entities to ensure that all Americans have equal access to safe, decent, and affordable housing.”
Calabria took office in 2019 and sought to end government control over Fannie Mae and Freddie Mac, which guarantee roughly half of the $11 trillion U.S. mortgage market.
Calabria said in a statement that he respected the Supreme Court’s decision.
“Much work remains,” he wrote. “When the housing markets experience a significant downturn, Fannie Mae and Freddie Mac will fail at their current capital levels. I wish my successor all the best in fixing the remaining flaws of the housing finance system in order to preserve homeownership opportunities for all Americans.”
In a split decision Wednesday, the Supreme Court ruled that the leadership structure of the Federal Housing Finance Agency was unconstitutional because of a provision preventing the president’s ability to remove its director, except “for cause.” The president nominates the director of the FHFA, who is confirmed by the Senate for a five-year term.
The majority of the justices wrote that the housing regulator should be treated the same way the Supreme Court recently treated the Consumer Financial Protection Bureau. Federal law had restricted the president’s ability to remove the CFPB chief, but the Supreme Court last year struck that down, saying such restrictions violate the separation of powers in the Constitution.
“But as we explained last Term, the Constitution prohibits even ‘modest restrictions’ on the President’s power to remove the head of an agency with a single top officer,” wrote Justice Samuel A. Alito Jr.
As home prices soar in unlikely places, the most vulnerable residents pay the price
The FHFA was created in 2008 amid worries that Fannie Mae and Freddie Mac were not sufficiently regulated given the dangerous housing bubble. The companies nearly collapsed shortly after the agency was created, and they were put under a government conservatorship that still exists.
The Supreme Court ruling comes as the housing market has emerged as one of the most unequal features of the economic recovery during the pandemic. Wealthier Americans are scooping up increasingly expensive homes and engaging in bidding wars that push home values even higher. Meanwhile, many renters, including those who lost jobs, are struggling to get by and fearing a June 30 deadline, when the current eviction moratorium from the Centers for Disease Control and Prevention is scheduled to expire. The Biden administration, though, is expected to extend the moratorium for another 30 days.
Policymakers at the Federal Reserve say they are not concerned that the state of the housing market poses financial stability risks. But they are keeping a close eye on the situation, with some economists wary of a bubble that could form the longer prices continue to soar.
Fannie Mae and Freddie Mac are two of the largest financial institutions in the United States, effectively backstopping the mortgage industry. They purchase mortgages on the secondary market, ensuring there is enough liquidity for banks and other lenders to extend loans. They remain controversial, though, and have remained under government control since 2008. It’s unclear when that arrangement will end.
Government support for the housing market has remained popular with many banks and housing groups because they believe it provides easier access to mortgages, but policymakers have not successfully hashed out what the long-term vision for these entities should be. Taxpayers had to bail out both companies after the financial crisis when many of the mortgage products that they held lost value.
The authority Biden cited came from a Supreme Court decision Wednesday that largely went against Fannie Mae and Freddie Mac investors who were challenging more than $100 billion in profits gathered by the government. The money was compensation for the taxpayer bailout Fannie and Freddie received after the 2007 housing market crash.
The justices rejected claims that the FHFA exceeded its authority under the Recovery Act. “In the Recovery Act, Congress sharply circumscribed judicial review of any action that the FHFA takes as a conservator or receiver,” Alito wrote for the court.
But the majority agreed with the investors that the law had unconstitutionally shielded the head of the FHFA by saying he could not be fired by the president except for cause. That decision follows a similar one from last term regarding the head of the Consumer Financial Protection Bureau.
The court’s liberals, nominated by Democratic presidents, said the majority went too far.
Justice Elena Kagan said she was compelled to agree on the president’s removal powers because of the court’s opinion last term in Seila Law v. Consumer Financial Protection Bureau. “But the majority’s opinion rests on faulty theoretical premises and goes further than it needs to.”
The justices sent the case back to a lower court, where investors will have a chance to show they were harmed by the president’s lack of control over the FHFA directors.
Freddie Mac launches new home renovation mortgage, here's how to get one
Freddie Mac on Thursday introduced its new mortgage product, the CHOICEReno eXPress mortgage, which will allow homebuyers and homeowners to pay for home renovations by funding the project through their mortgage purchase or refinance.
Freddie Mac said this will save homebuyers and homeowners time and money, and give them the funds they need for home renovations at low cost with no extra fees and interest rates that mirror mortgage interest rates, which are currently at historic lows. The loan is closed with their traditional mortgage and combined into one monthly payment.
"CHOICEReno eXPress expands upon the Freddie Mac CHOICERenovation mortgages, which were designed to help address the nation’s aging housing supply, support the need for affordable housing, and offer renovation, repair, improvement or refinance options to support the increasing demand for cost-effective financing solutions," said Danny Gardner, senior vice president of client and community engagement for Freddie Mac’s single-family business. "CHOICEReno eXPress will help homebuyers and homeowners reduce their out-of-pocket costs by offering more affordable loan terms than using credit cards or unsecured financing when making small-scale renovations."
If you're interested in adding the home improvement loan to your mortgage purchase or refinance, visit an online marketplace like Credible to find a lender with lower rates. By comparing mortgage rates from multiple lenders, borrowers can save hundreds of dollars on their monthly payments and leave more room in their renovations budget.
Email me at 123@soez.tv
We just improved Jumbo Smart loans in a big way.
- We only need one appraisal.
- Max loan amount increased from $2 million to $2.5 million.
- LTV cap increased from 80% to 89.99%.
- Max allowed DTI increased from 40% to 45%.
- Minimum FICO score lowered from 700 to 680.
- No more $500,000 cash-out limits. They’re now unlimited as long as requirements are met.
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