Treasury: Comprehensive Housing Finance Reform Must Be Built on Core Principles

first_img Treasury: Comprehensive Housing Finance Reform Must Be Built on Core Principles  Print This Post Antonio WeissAmid many calls from housing industry stakeholders and politicians alike in the last few years to end the FHFA’s conservatorship of Fannie Mae and Freddie Mac, a top Treasury official said on Friday that the Obama Administration believes that any comprehensive housing finance reform that occurs must be built on a set of established core principles.Speaking at the Consumer Federation of America’s Annual Financial Services Conference in Washington, D.C., on Friday, Antonio Weiss, Counselor to the Treasury Secretary, stated that the housing finance system remains “the great unfinished business” of financial reform. He noted that the Administration stands behind a set of core principles for housing finance reform:Those core principles include:Providing broad access to long-term, fixed rate lending in all communities through all economic cycles.Limiting taxpayer exposure to an explicit, appropriately-priced guarantee to ensure against catastrophic risk.Maintaining a level playing field for community banks and credit unions, which know how best to serve their customers.Weiss noted the most significant bipartisan legislative effort at comprehensive finance reform, introduced in 2014 by Senators Tim Johnson (D-South Dakota) and Mike Crapo (R-Idaho), passed out of the Senate Banking Committee but never received a full floor vote. While Weiss said he believed this bill embodied several of the core principles laid out by the Administration, at the same time he noted that many have expressed concerns about the bill.“Chief among them was a concern that it would not do enough to meet the needs of traditionally underserved markets,” Weiss said. “While the GSEs’ business model is flawed, much of what they do to promote access and affordability is effective. FHFA has reflected a commitment to these important priorities, including their promulgation of duty-to-serve requirements, an essential catalyst to do more to address borrowers with low to moderate income. We believe a new system should build upon the existing policies that are already working.”Weiss said others believe the bill should have done more to ensure a level playing field between smaller firms and larger financial institutions. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Government, News Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily “We recognize that prospects for achieving a bipartisan path forward in the near-term are dim. But we still must lay the groundwork for a future system.”Antonio Weiss, Counselor to the Treasury Secretary“Expanding a future housing finance system to include smaller institutions has benefits beyond safeguarding the economy,” Weiss said. “Community banks, credit unions, and local lenders are closer to many borrowers outside the purview of the largest lenders. They are in a unique position to assess and address the credit needs of their customer base. This can lead to more effective risk assessment, and better outcomes for borrowers and investors.”Weiss reiterated his stance against Treasury allowing for the recapitalization of Fannie Mae and Freddie Mac and releasing them from the FHFA’s conservatorship, stating that “This approach is simply a bad deal for taxpayers and homeowners alike.” Weiss published an editorial in Bloomberg View in October insisting that the so-called “recap and release” of the GSEs would not happen during the final year of the Obama Administration and that it was a bad idea because it would not increase access to the housing market for creditworthy borrowers, taxpayers have not been fully repaid for the $187.5 billion bailout the GSEs received in 2008, and the cost of obtaining a mortgage would go up since it would take decades for the GSEs to build safe and sound levels of capital.Until housing finance reform that is built on those core principles can occur, the Administration and FHFA have engaged in a series of “administrative actions” to reduce the risk to taxpayers in the housing market, one of which is winding down the legacy investment portfolio of Fannie Mae and Freddie Mac. Weiss also noted the “steady progress” the GSEs have made in implementing risk-sharing transactions that “aim to reduce taxpayer risk and revive the role of private capital in the housing market.”“We remain committed to working with Congress on housing reform that meets our core principles,” Weiss said. “We recognize that prospects for achieving a bipartisan path forward in the near-term are dim. But we still must lay the groundwork for a future system.” December 4, 2015 1,029 Views Previous: What Changes Are Coming to the CFPB’s Consumer Complaint Database? Next: Will 2016 Bring Unwelcome Surprises for the Housing Market? Home / Daily Dose / Treasury: Comprehensive Housing Finance Reform Must Be Built on Core Principles The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: Fannie Mae FHFA Freddie Mac Housing Finance Reform U.S. Department of Treasurycenter_img Related Articles Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Brian Honea Demand Propels Home Prices Upward 2 days ago Fannie Mae FHFA Freddie Mac Housing Finance Reform U.S. Department of Treasury 2015-12-04 Brian Honea Subscribelast_img read more

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Credit Card Debt Is Rising, and Housing Costs Aren’t Helping

first_img credit card debt House Prices Mortgages NerdWallet 2017-12-11 David Wharton Credit Card Debt Is Rising, and Housing Costs Aren’t Helping Data Provider Black Knight to Acquire Top of Mind 2 days ago December 11, 2017 2,070 Views Servicers Navigate the Post-Pandemic World 2 days ago American credit card debt continued to creep higher in 2017, with the average American household now owing a balance of $15,654, according to a new analysis by NerdWallet. For a bit of context, NerdWallet’s study also found that the average American household holding any debt at all owed a total of $131,431—including mortgages. Furthermore, Americans with a mortgage owe an average of $173,995 toward that mortgage, according to NerdWallet’s study.Overall, U.S. consumers owe $8.74 trillion on their mortgages, and $905 billion towards credit card debt.NerdWallet’s study finds that the median annual household income has grown 20 percent over the past decade, which is ahead of the cost of living increase during the same period (18 percent). That’s good news, on the face of it. However, specific cost increases have outpaced income growth during that decade, including housing (20 percent increase), medical expenses (34 percent), food and beverages (22 percent), and “other” expense (30 percent). According to a recent FHFA report, home prices rose 6.5 percent between Q3 2016 and Q3 2017. When these costs mount, average Americans often turn to credit cards to try and make ends meet.  Unsurprisingly, Americans with credit card debt said they view trying to keep up with those monthly payments as an impediment to other financial goals. In a NerdWallet survey, 57 percent of those surveyed said they would save money for future emergencies if not for their credit card debt. Fifty percent said they would save it for some future goal—such as buying a home—while 33 percent said they would use the money toward paying off other debts.Interestingly, however, NerdWallet’s study found that homeowners are, on average, paying quite a bit more on credit card interest annually than renters are. The average homeowner is paying around $1,001 in credit card interest per year, which is nearly twice the renter average of $537.Another interesting finding: self-employment also ratchets up the average total credit card debt for a household. According to NerdWallet, “U.S. households led by self-employed individuals pay $1,194 in credit card interest each year, compared with $843 for those who work for someone else.” A Fannie Mae survey revealed that one-fifth of American adults have provided a service through the gig economy, and many of those surveyed say they do want to buy a home at some point. Along with other factors such as medical debt, the increased average credit card debt for those who are self-employed or gig workers could prove one major obstacle toward owning a home for this segment of the population.One good piece of news: 41 percent of those surveyed reported unnecessary purchases as a contributing factor toward credit card debt. If these purchases are recognized by the consumer as unnecessary, eliminating or decreasing those expenditures would be a good first approach to decreasing that household’s credit card debt. However, 33 percent of those surveyed reported using credit cards to help supplement regular income in order to afford necessities—and “necessities” often involves things from those categories that are rising faster than income growth, such as housing and medical expenditures. It remains a tricky balance for struggling families to pay their bills and still be able to save for the future—or for a home.You can read NerdWallet’s full 2017 American Household Credit Card Debt Study by clicking here. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Tagged with: credit card debt House Prices Mortgages NerdWallet The Best Markets For Residential Property Investors 2 days ago About Author: David Wharton Previous: What’s on the Horizon for Housing Affordability? Next: Tax Changes Could Drive Migration, Slow Home Sales  Print This Post Demand Propels Home Prices Upward 2 days agocenter_img Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Credit Card Debt Is Rising, and Housing Costs Aren’t Helping in Daily Dose, Featured, Journal, Market Studies, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago David Wharton, Managing Editor at the Five Star Institute, is a graduate of the University of Texas at Arlington, where he received his B.A. in English and minored in Journalism. Wharton has over 16 years’ experience in journalism and previously worked at Thomson Reuters, a multinational mass media and information firm, as Associate Content Editor, focusing on producing media content related to tax and accounting principles and government rules and regulations for accounting professionals. Wharton has an extensive and diversified portfolio of freelance material, with published contributions in both online and print media publications. Wharton and his family currently reside in Arlington, Texas. He can be reached at [email protected] The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily Subscribe The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

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