Real Estate: Feds move on home mortgage rules

Posted on March 30, 2011 by Bob Berwyn

New mortgage rules are up for public comment.

“The intent of this rulemaking is not to kill private mortgage securitization — the financial crisis has already done that.”

~FDIC Chair Sheila Bair

SUMMIT COUNTY — In a move that will ultimately have long-term implications for the real estate market in Colorado and across the country, federal regulators this week announced one of their proposals to restructure home lending rules.

Click here to read the federal notice and to comment.

The Federal Deposit Insurance Corporation and the Federal Reserve now want public comment on the plan, which would require  lenders to offer mortgages with at least a 20 percent down payment if they want to repackage the loan to sell to other investors without keeping some of the risk on their books. (more…)

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Congress looks at mortgage finance reform

Posted on March 2, 2011 by Bob Berwyn

Treasury Secretary Timothy Geithner testifies on reforming the mortgage finance industry. Click on the picture to watch C-Span video of the House Financial Services Committee hearing.

Obama administration calls for shrinking government’s role in housing market, phasing out Fannie Mae and Freddie Mac and larger downpayments

By Summit Voice

SUMMIT COUNTY — The taxpayer-financed $150 billion bailout of the housing finance industry has triggered a serious push to reform the system, with Treasury Secretary Timothy Geitner leading the charge by calling on Congress to pass a law that would dissolve Fannie Mae and Freddie Mac, the government-controlled home mortgage companies.

Appearing before the House Financial Services Committee, Geitner outlined the administration’s plan for “unwinding” Fannie and Freddie over the next five to seven years and sharply reducing the government’s role in the housing market in the future. The plan also recommends requiring larger down payments on home purchases. Click here to watch a C-Span video of the hearing. (more…)

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Summit County: Energy improvement loans on hold

Posted on September 17, 2010 by Bob Berwyn

A local loan program for homeowner energy improvements is on hold indefinitely. PHOTO VIA THE CREATIVE COMMONS.

Federal loan policies create huge roadblock for programs around the country

By Bob Berwyn

SUMMIT COUNTY — A county loan program aimed at financing energy improvements is on hold indefinitely, as federal mortgage policies created insurmountable roadblocks.

The county commissioners this week voted to put the program on ice until the issues have been resolved.

The local program would have created a fund that homeowners could have used to pay for new insulation and other environmentally friendly upgrades. But Fannie Mae and Freddie Mac, the two government-chartered mortgage companies that set lending polices, said several months ago they wouldn’t back loans on properties encumbered local energy improvement loan.

Here’s what at issue: When a local government entity finances improvements up-front, a lien is placed on the property until the loan is repaid. That lien, like other property tax assessments, takes priority over the mortgage in case of default. (more…)

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More woes for local energy improvement loan programs

Posted on September 2, 2010 by Bob Berwyn

Federal loan agencies are taking a hard line on locally financed energy improvement loans.

Feds say homeowners must pay off property tax assessed loans before refinancing mortgages

By Bob Berwyn

SUMMIT COUNTY — A financing program for residential energy efficiency upgrades may be dead in the water for now, as Fannie Mae and Freddie Mac once again came out with a policy that hinder the ability of homeowners to repay loans through an annual surcharge on their property taxes.

The two government-chartered mortgage companies said Tuesday that homeowners must pay off the energy improvement loans before they can refinance mortgages. (more…)

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Letter: Save PACE!

Posted on August 23, 2010 by Bob Berwyn

Advocates for reneweable energy are fighting for a property tax-based funding mechanism that helps homeowners finance installation of solar systems and other energy efficiency improvements.Dear Editor,

Dear Editor,

Property Assessed Clean Energy (PACE) financing is an innovative local government solution that allows participating homeowners and businesses to voluntarily agree to a special property tax increase as a means of financing energy efficiency and renewable energy improvements.

With homeowners and small businesses throughout the San Luis Valley struggling more than ever to meet rising energy costs, PACE will provide low-interest upfront financing that pays for itself through lower energy bills.  It will also create hundreds of jobs in these hard economic times.  Just as Colorado was gearing up to administer a state-wide program that we in the San Luis Valley could opt into by a simple resolution passed by each of our County Commissions, Fannie Mae and Freddie Mac threw a selfish and unnecessary wrench into the process.

We need our Congressional Representatives to fix this problem now.  Fannie Mae and Freddie Mac have thrown a wrench into the works and stopped PACE across the country. Congress, which chartered Fannie Mae and Freddie Mac, needs to step in to resolve this problem by passing the PACE Assessment Protection Act (H.R. 5766) that clearly guarantees local government the right to assess special taxes for clean energy programs. (more…)

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Banks recovering, bailout burden shifts to housing

Posted on January 9, 2010 by Bob Berwyn

The Summit County real estate market is slowly recovering from the global recession and federal efforts to support institutions that provide financing for housing could help provide additional stability. New construction in the county and local towns has slowed considerably, but a few new projects have been completed, including Frisco's WaterTower Place, which includes an affordable housing component. For more information on this project click on the image.

ProPublica takes a look at federal efforts in the housing market, including frustrating delays and lack of oversight in the foreclosure prevention program

*Editor’s note

This week’s story from ProPublica focuses on how the federal bailout program’s burden is shifting toward the U.S. housing market. The reporting by Paul Kiel includes information on how the federal government will start to spend significantly on its foreclosure prevention program. Previous ProPublica reports have explained how delays in the program’s implementation have hurt homeowners in trouble and how the program lacks transparency and effective oversight.

Next week, Summit Voice will follow up with a story taking a look at how the new focus on housing could affect Summit County’s real estate and development market.

More info on ProPublica here.

*******************************

by Paul Kiel, ProPublica

The year ended with three of the biggest bailout recipients – Bank of America, Wells Fargo and Citigroup – together returning more than $90 billion to the Treasury Department. But it also ended with a Christmas Eve announcement from the Treasury that it could spend a virtually unlimited amount of money bailing out Fannie Mae and Freddie Mac. So while the Treasury is winding down its programs to support the nation’s banks, it will continue to spend big to prop up the housing market. (more…)

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