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Justin Fitzhugh

Housing, Americas Future A Study by the Bipartisan Policy Center - Introduction

Thursday, August 21, 2014 - Article by: Justin Fitzhugh - Nations Lending Corporation - Message

I came across Housing, Americas Future: New Directions for National Policy report, and after I read the executive summary I decided to discuss some of its topics through my blog posts. The report was sponsored by The Bipartisan Policy Center[1] in an effort to analyze what motivated the last Housing Collapsed and Sub-Prime Lending Crisis, and the goal to think about policies that can help us build a sustainable housing market and financing system. The report covers topic about home valuation, housing finance, affordable rental housing, rural housing, and housing for seniors. I would not read the whole report unless I had to discuss it with somebody, and i imagine very few people will ever read the report. But I think it is worth reading and sharing this information, because we are experiencing many changes in the mortgage industry, and some of the policy changes were proposed by this report. Hence, I think that a deeper discussion of it may help us forecast or better understand what motivates regulators and policy makers as they shape our industry.

I will read the various sections of the report, and I will share a summary of each section through a weekly post. This post is an introduction in which I will synthesize the reports executive summary. I invite you to follow and discuss these topics with readers. Remember, we too shape the policies that govern and regulate us.

BACKGROUND

The report was put together by members of the think tanks own Housing Commission.[2] The Commission was formed by members of renowned financial institutions, consumer groups, and government institutions, and the report, is the result of 16 months of examination of the U.S. Housing system. In preparing the recommendations that follow, an overarching goal of the commission was to ensure that the nations housing system enables individuals and families to exercise choice in their living situations, as their needs and preferences change over time

THE FINDINGS

After the housing market collapsed, 2007, rental demand has dramatically increased, resulting in unaffordable rents. In the background, the nation is experiencing dramatic demographic changes that have a direct impact on housing needs. As Baby Boomers age, Echo Boomers are the primary drivers of household formation, and the American Population is the most diverse it has ever been.

THE REPORTs CONCLUSION

The Housing Commission concluded the U.S. Housing system is broken,[3] despite the fact that many families are prepared to assume the financial responsibilities of homeownership. However, the limited access to affordable mortgage credit, and increasing rental housing costs are a bottleneck to economic growth. Meanwhile, the country is not ready to accommodate the millions of seniors who are choosing to age in place.

THE RECOMMENDATIONS [4]

  • promote and enable responsible homeownership, and ensure that creditworthy households have access to homeownership and its benefits
  • a new finance system that promotes diverse funding, and in which the private sector plays a greater role and bears more of the risks
  • a results driven approach to the provision of rental subsidies that benefits the lowest-income renters while it demands high performance from rental housing providers
  • a comprehensive approach to the development and planning of appropriate housing for seniors who choose to age in place

I VALUE HAVING FOUND THIS REPORT. I followed up with many of the Finance Reform hearings held by the Banking, Housing, and Urban Affairs Senate Committee, and the topics covered much of what is presented through this report. As I said earlier, I think that reading and sharing the main findings, conclusions, and recommendations in more depth will elucidate the events and policies that re-shape our industry.

1) The Bipartisan Policy Center was founded in 2007 by forcer Senate Majority Leader Howard Baker, Tom Daschle, Bob Dole and George Mitchell with the intention to drive principled solutions through rigorous analysis, reasoned negotiation and respectful dialogue. This think tank is based in Washington, DC.

2) http://bipartisanpolicy.org/library/report/housing-america%E2%80%99s-future-new-directions-national-policy

3) http://bipartisanpolicy.org/sites/default/files/BPC_Housing_Report_ExecSum_0.pdf#page=15

4) http://bipartisanpolicy.org/sites/default/files/BPC_Housing_Report_ExecSum_0.pdf#page=7

Through our mortgage branch opportunities, we help our branch partners grow their referral business. To help loan officers communicate with realtors and manage borrowers expectations, Nations Lending Corporation is committed to keeping partners in the loop through all stages of the approval process. It is our intention to promote homeownership. Although we are not a net branch company, and we dont offer mortgage net branch opportunities, our partners benefit from bundled solutions that help them build sustainable businesses. Please visit our website to learn more.

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