Posted on Wednesday, January 5, 2011
Last week the Wall Street Journal
> published four housing-related issues to keep an eye on in 2011, which really haven't
> changed much. #1 is jobs. "Who's going to buy a house when they're not certain they'll
> have a job in six months and when it looks like home prices are likely to fall another
> 5%?" #2 is delays in the foreclosure process. Much of this has blown over, but still
> regulators and state prosecutors are in the midst of a series of reviews and investigations
> that could shed more light on abuses, such as misapplied or excessive fees, by servicers,
> their attorneys and other third-party vendors. According to the WSJ, #3 will be
> whatever comes out of Washington DC in terms of Freddie & Fannie, the Dodd-Frank
> Act implementation, what does a "qualified residential mortgage" mean in terms
> of the 5% risk retention, etc., etc. And #4 on the list is underwriting guidelines.
> 90% of production now is related to some type of government agency - if those change,
> private lenders are going to have to step up lending without additional fees, government
> regulations, down payments, etc. It is a tall order, given the overlays already
> in place.