NCSHA Blogs
Urban Institute Analysis Finds Tight Credit Standards Prevented Millions From Getting Mortgages
Unusually tight credit standards in the current housing market may have prevented over 5 million borrowers from taking out a mortgage, according to an analysis released earlier this week by the Urban Institute. The analysis finds that, between 2009 and 2014, 5.2 million more loans would have been originated if credit standards had been similar to what they were in 2001.
HUD Issues Fair Housing Assessment Tool for Local Governments, Data Mapping Tool, and Other Fair Housing Resources
On December 31, HUD published the final Assessment Tool that local governments will use to prepare their Assessments of Fair Housing (AFH) under HUD’s Affirmatively Furthering Fair Housing (AFFH) rule. As NCSHA has reported previously, HUD will develop separate assessment tools for states, insular areas, and public housing agencies to account for the distinctions between different types of HUD program participants.
Congress Passes Omnibus Spending and Tax Bill with Permanent 9 Percent Minimum Housing Credit Rate, HOME Increase
Today, the Senate passed combined FY 2016 omnibus spending and tax extender legislation, following House passage of the tax extender bill yesterday and the omnibus spending bill earlier this morning. After passing the two bills separately, the House combined them into one bill for Senate consideration. The combined bill now goes to the White House for the President’s signature to become law.
Tax Package Makes Permanent 9 Percent Minimum Housing Credit Rate
Late December 15, Speaker of the House Paul Ryan (R-WI) unveiled tax extender legislation, the Protecting Americans from Tax Hikes Act of 2015, that would renew and make permanent some of the expired tax provisions, including the 9 percent minimum Housing Credit rate, and extend for either five years or two years other expired tax provisions. The bill—a major victory for NCSHA and other Housing Credit industry stakeholders—is the result of weeks of negotiations among leaders of both parties and both chambers.
FY 2016 Omnibus Spending Bill Increases HOME Funding
In the early hours of the morning on December 16, Speaker of the House Paul Ryan (R-WI) unveiled the Fiscal Year (FY) 2016 omnibus spending bill, providing $1.1 trillion in funding for government operations, including funding for U.S. Department of Housing and Urban Development (HUD) and U.S. Department of Agriculture (USDA) Rural Housing Service programs.
FHFA Releases Proposed Duty to Serve Rule for Fannie and Freddie
Earlier today the Federal Housing Finance Agency (FHFA) released its proposed “Duty to Serve” rule, which would require the Government-Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac to support housing for lower income families in three underserved segments of the housing finance market: manufactured housing, affordable housing preservation, and homeownership opportunities in rural areas.
Final Multiyear Transportation Bill Includes Housing Provisions
After months of deliberation both the House and Senate yesterday by wide margins passed multiyear transportation legislation—the Fixing America’s Surface Transportation Act (FAST). President Obama is expected to sign the bill before current authorization expires at the end of today.
Congressional Negotiators Closing in on Tax Extenders Bill Deal
House and Senate negotiators are working to reach agreement on tax legislation that would make permanent some of the currently temporary tax provisions and extend others for a finite period of time, potentially two years in most cases. Many of the temporary provisions have already expired, including a provision NCSHA supports that established a 9 percent minimum Housing Credit rate.
Moody’s Report Predicts Stable Outlook for State HFAs in 2016
Last week, Moody's Investors Service (Moody's) released a report predicting a stable financial outlook in 2016 for state HFAs. The report concludes that the continued growth of state HFAs median margins (net revenue/total revenue) and strong loan production indicates a stable outlook for fiscal year (FY) 2016. Moody's says HFAs must begin to rebuild their balance sheets by adding more mortgage loan assets to their portfolios to achieve a positive outlook.
HUD Publishes 2016 QCTS and DDAs Using New Small Area DDA Methodology
Today, HUD published on its website the 2016 Difficult Development Areas (DDAs) and Qualified Census Tracts (QCTs), which are eligible for the 30 percent basis boost under the Housing Credit program. As HUD has long planned, the methodology for determining 2016 metropolitan DDAs relies on new Small Area Fair Market Rents, and thus result in 311 zip code level small area metropolitan DDAs across 45 states, the District of Columbia, and Puerto Rico. This compares to 35 full metropolitan statistical areas in 11 states plus Puerto Rico that HUD designated as DDAs in 2015.
