Meeting the Housing Needs of a Changing America The Mortgage Collaborative – Tucson February 21-23, 2016

2 2 THE STATE OF HOMEOWNERSHIP IN AMERICA

Homeownership is at its lowest level in 48 years Source: Federal Reserve Bank of St. Louis and the Current Population Survey, Bureau of Census, Washington DC The rate of homeownership has dropped fastest in the “Diverse Communities”. The national homeownership rate is down to 63.7%, a loss from its peak of 69.2%.

Source: National Association of Realtors First-Time Homebuyers Have Not Returned 4 Share of first-time home buyers Normal Range

Source: May 8, 2015www.keepingcurrentmatters.com Buying is More Affordable Than Renting 5

6 6 DEMAND

The American Dream of Homeownership Is Still Alive – Nearly All People Under Age 65 Expect To Buy In The Future… 7

New Households Will Be Diverse million of the 17 million projected new households between SOURCE: Updated Household and New Home Demand Projections, Sept 2010 Joint Center for Housing at Harvard, US Census – homeownership rates Q * Non-Hispanic

9 9 DIFFICULTY

Notes: Data for Renters only. Cash savings includes checking, saving, CD and money market accounts. Source: JCHS tabulations of 2010 Survey of Consumer Finances. Renters Have Minimal Savings/Wealth – Need Low Downpayment Loans 10 Cash Savings (Thousands of dollars)Total Net Wealth (Thousands of dollars)

Source: USMI Years to Save 10% Downpayment 11

12 SOLUTIONS

Core Principles To Ensure Affordable And Sustainable Homeownership 13 Preserve low downpayment 30 year, fixed rate mortgage. Maintain a government guarantee of typical, conventional mortgage backed securities (not the mortgages themselves) as well as Ginnie Mae and FHA, VA, RHS. Prohibit predatory lending in the mortgage market by protecting Dodd-Frank’s protections for consumers. Increase use of private MI to make low downpayment loans more available (and affordable) and reduce taxpayer risk. Preserve precious government resources (e.g. FHA) for those who need it most. Increase availability and use of housing counseling.

Washington DC Housing Policy: the report card……. CFPB – Regulations and Enforcement GSE policies and practices FHA policies and practices The Future of the GSEs Fair Lending Issues Affordable Housing Goals – Duty to Serve Basel III and the coming impact SIFI designation / Too Big to Fail – Too Small to Comply 14