Finance

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HousingWire - Here are 5 bold predictions for housing in 2017 .... Plus, a bonus

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HousingWire - Here are 5 bold predictions for housing in 2017 .... Plus, a bonus

As originally appeared in HousingWire

At this time last year, I predicted 2016 would be a good year to buy a home. It appears millions of Americans agreed with me. Total home sales were up 5% in the first half of 2016, and the total annual growth is expected to cap off at 4.7%. Most encouraging is the record 34% first-time homebuyers in Q3 2016, up from 29% in 2015.

For 2017, I predict a softening led by the imminent rates hikes – Fed supported or not. But there still could be opportunities for buyers and sellers alike.

ValueInsured offers innovative homebuyer-first solution to FHFA’s credit risk transfer RFI

ValueInsured offers innovative homebuyer-first solution to FHFA’s credit risk transfer RFI

DALLAS, Nov. 21, 2016 – ValueInsured, the only provider of down payment protection, submits a response to the Federal Housing Finance Agency’s (FHFA) Single-Family Credit Risk Transfer Request for Input (RFI). The RFI was issued to “assist FHFA and the Enterprises in their ongoing analysis of font-end credit risk transfer transaction structures in which a portion of the credit risk is transferred prior to Enterprise acquisition of the underlying mortgage.”

In its submission, ValueInsured outlined why down payment protection could be one of the most effective and far-reaching credit risk transfer (CRT) solutions, citing:

  • Down payment protection (DPP) represents an additional up-front risk transfer mechanism not currently in use;
  • DPP is the only upfront risk transfer mechanism designed to modify borrower behavior so as to avoid defaults;
  • In contrast with other CRT mechanisms that only deal with default scenarios, DDP-related loans would be de-risked before getting onto the GSE’s balance sheets;
  • For the period just prior to and during the housing crisis (1999 through 2008), DPP covered transactions would have provided approx. $2.2 billion of coverage toward borrower down payments on loans that ultimately went into foreclosures, and an additional $37.24 billion to cover borrowers’ home equity losses;
  • DPP-related loans backed by major reinsurers represent an efficient use of capital that positively impacts the cost structure of residential mortgage loans.

NerdWallet - How to Get Online Help With a Mortgage Down Payment

NerdWallet - How to Get Online Help With a Mortgage Down Payment

Let’s say you don’t have a rich aunt who’s going to spot you the down payment for a home. And maybe you’ve tapped all the down payment savings hacks you can find. Still, your savings balance is so small you’ve got to squint to see it.

Can you crowdfund your down payment? Maybe get a grant? Here are some online resources to help you clear the biggest hurdle to homeownership...and how to protect your down payment.

Brexit and US Housing

Brexit and US Housing

Uncertainty always exist.  It just takes events like Brexit to see them.  

Unfortunately, big events, in an age of social media and a larger shared community, are happening more often. And they each have the potential to impact what is one of the US’ biggest economic drivers - housing.  It underscores the old adage that the only person you can control is yourself.  Never has that been more true than today.  

More on why first-time home buyers are staying on the sidelines

More on why first-time home buyers are staying on the sidelines

Hint: it's affordability and risk

Andrea Riquier wrote in the MarketWatch article Why first-time home buyers are staying on the sidelines that the missing-link into housing growth is first-time homebuyers and the primary reason for this miss is home prices.  While that is certainly true, what is not so transparent but is eluded to are the human, emotional elements at play here.

Interest rates just rose. Should you worry?

Interest rates just rose. Should you worry?

Our historic-low interest rates just inched up a bit, creating big headlines.

Specifically, the Fed just raised its benchmark interest rate by .25 percent for the first time since 2006. This morning, prospective homebuyers find themselves ruminating over a lot of what-ifs.

  • Did I miss my window of opportunity?
  • Is buying a home a bad deal now?
  • What if rates keep rising?
  • What if rising rates erode the value of the home I want to buy (or already own)?
  • Will I be locked in my next home for decades?

Not to worry. The rate hike isn’t that big a deal. 

Four reasons why 2016 is a good time to buy a home

Four reasons why 2016 is a good time to buy a home

With 2016 fast approaching, now is the time for renters to get off the sidelines, start organizing their finances and take on the excitement of homeownership.

But given the recent history of the housing market and Americans’ increasing need to stay mobile, it is understandable that it can be nerve-wracking to invest your hard-earned money in a home.

However, unlike years past, all key economic indicators are ripe and there are two major changes to the mortgage process that help make 2016 a good year to buy a home.

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