Author Archives: ipgocorp

CFPB Staff Will Present TRID Rule Webinar

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(RECAP: The CFPB staff will present an informational webinar on Tuesday, April 12, 2016 to address issues with the TILA/RESPA Integrated Disclosure (TRID) rule in connection with questions that have been raised since the rule took effect on October 3, 2015. No further information has been provided with regard to the content of the webinar, titled Know Before You Owe Mortgage Disclosure Rule – Post-Effective Date Questions and Guidance. Because few details have been released in connection with the presentation, topics could vary from general guidance to specific guidance on fact specific situations.)

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Policy Changes Should Make Lenders Less Scared of FHA

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(RECAP: The FHA has released new loan-level and annual lender-level certifications which it said it expects will provide better clarity to lenders about FHA policies, including those that are designed to protect borrowers and ensure quality lending practices. Edward Golding, Principal Deputy Assistant Secretary for HUD and FHA Commissioner, said in a letter to lenders that FHA wanted to make clear they will be held accountable by the agency for only those mistakes that would have altered the choice of a loan’s approval when those loans are backed with FHA guarantees. The goal, Golding said, is to make sure lenders make every effort to obtain and validate accurate information but also to recognize minor errors may occur from time to time. With these changes, he said, “we anticipate lenders will be able to more confidently participate in our program and offer access to a wider number of FHA-eligible borrowers.”)

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Majority of Boomers, Millennials and Gen Xers View Renting as More Affordable Than Homeownership

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MCLEAN, VA – Despite rent increases and feeling burdened by their finances, 70 percent of renters currently feel renting is a more affordable choice than homeownership, according to a Freddie Mac survey, and 55 percent plot to keep renting in the next three years. When looking across the generations, the views are similar with 70 percent of Millennials, 61 percent of Gen Xers and 73 percent of Baby Boomers thinking that renting is a more affordable choice for them.

“Renting is becoming a well loved choice among many age groups,” said David Brickman, executive vice president of Freddie Mac Multifamily. “While most renters still have favorable views toward homeownership and aspire to it, many choose to rent because they view it as more affordable and a better fit for their lifestyle right now.”

For the Freddie Mac quarterly online survey of renters conducted in January and February 2016, 46 percent say renting is a excellent choice for them now regardless of whether they plot to buy or believe they will be able to afford to do so. The perception is even more positive among Millennials with 54 percent saying renting is a excellent choice for now. 

Future Home Buyers
Similar to what was seen in the October 2015 survey, renters of single-family homes are the most likely home buyer, with 52 percent stating they plot to buy a home in the next three years, compared to 36 percent of apartment renters. A closer look shows that older Millennials age 25-34 are the group most likely to become homeowners (56 percent), followed by Gen Xers (49 percent), younger Millennials age 18-24 (44 percent) and Baby Boomers (31 percent).

Many renters who plot to buy in the next three years still indicate they have financial hurdles to overcome which include:

Affording a down payment (36 percent)

Not a excellent enough credit history (35 percent)

Not making enough money (30 percent)

Carrying too much debt (23 percent)

Well loved Reasons for Renting

Renters continue to indicate their choice to rent is influenced by more than just financial reasons, that lifestyle preferences also are a factor. 

The most well loved reason for younger Millennials is that renting allows them to save money (42 percent), followed by it being their best option for their lifestyle and age (39 percent).

Gen Xers top reason is that renting gives them freedom from home maintenance (28 percent), followed by not wanting the responsibilities of owning a home (24 percent).

Close to four in ten Baby Boomers say they rent because they do not want to worry about home maintenance (41 percent), do not want the responsibilities of owning a home (37 percent) and renting is the best option for their lifestyle and age (37 percent). 

Many renters also report that they do not intend to go even if their rent has increased. 

“Nearly half of all renters whose rent rose in the last two years say they like where they live and will stay regardless of rent increases,” Brickman said.

Aside From Cost, Safety is Key When Choosing a Rental

When cost is taken out of the equation, about half of the choice in choosing a rental property is influenced by both the safety and convenience of the location. Among all age groups, the most vital considerations in choosing a rental are:

Safety and security (27 percent)

Convenient location (19 percent)

Size (13 percent)

Privacy (12 percent)

Pet friendliness (12 percent)

Additional details about the research, including charts, are on the Freddie Mac website.

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