During National Homeownership Month, we recognize the many benefits of homeownership to our families, our communities, and our Nation. For generations of Americans, owning a home has been an essential element in achieving the American Dream. Homeownership is often the foundation of security and prosperity for families and communities and an enduring symbol of American freedom.
This month, we recommit to ensuring that hard-working Americans enjoy a fair chance at becoming homeowners. In the years since the Great Recession, homeownership rates have dipped to historic lows. Many Americans are not confident they will ever own a home, a tragic consequence of a decade of weak economic growth, excessive regulations, and stagnant wages. Many young families are unable to achieve the independence they desire because they have difficulty saving for a down payment, overcoming regulatory burdens, or gaining access to adequate credit. These challenges are even more pronounced for minorities, whose homeownership rates remain substantially below those of their fellow Americans.
I am committed to helping hard-working Americans become homeowners. As part of my Administration's plan to strengthen the middle class and the American housing market, I am working with the Congress on a pro-growth agenda of reducing rules and regulations, cutting taxes, and eliminating unnecessary government spending. These policies will unshackle our economy and create and sustain high-paying jobs so that more Americans have the resources and freedom they deserve to fulfill their American Dream.
The United States Department of Housing and Urban Development (HUD) has released the FY 2017 Rent Limits and Income Limits for HOME Investment Partnerships Program (HOME) and Housing Trust Fund (HTF).
All updated limits are effective as of June 15, 2017. They are available on the HUD Exchange at the link below:
- 2017 HOME Income Limits
- 2017 HOME Rent Limits
- 2017 HTF Income Limits
- 2017 HTF Rent Limits
https://www.hudexchange.info/resource/5333/notice-cpd-1705-guidance-for-htf-grantees-on-fy-2017-htf-allocation-plans/
The Consumer Financial Protection Bureau (CFPB) published a notice in the Federal Register announcing that CFPB will be conducting an assessment of its Ability-to-Repay rule (ATR rule). The Notice seeks public input on CFPB's plans for the assessment and recommendations for improving it. The ATR rule, which took effect in January 2014, outlines the steps mortgage originators are required to take to obtain and verify information to determine whether a consumer can afford to repay a mortgage. It also establishes a set of criteria that a mortgage loan must meet to be considered a "qualified mortgage" (QM). If a mortgage loan meets the QM criteria, the originator is presumed to have complied with the requirements of the ATR rule. NCSHA previously summarized the ATR-QM rule in more detail on its blog after CFPB first published the final rule. HFA program loans are currently exempt from the requirements of the ATR rule, an exemption NCSHA advocated for. This exemption applies to both loans originated directly by HFAs and loans originated by HFAs' lender partners pursuant to HFA programs.
The share of first-time homebuyers continues to rise, now accounting for almost half of all GSE purchase loans and more than 80 percent of FHA loans, according to the May 2017 Chartbook, released by the Urban Institute’s Housing Finance Policy Center. According to the Chartbook, 47.1 percent of all GSE purchases loans were first-time homebuyers in February 2017, while a whopping 82 percent of FHA loans came from first-timers. When combined, about 60 percent of all purchase loans for the month of February were from first-time buyers—just below the 2009 peak of 63 percent. For the first time in 10 years, the creation of new-owner households outpaced new-renter households. The Chartbook attributed the rise to an “improving economy, falling unemployment, and rising household formation and income.” An increase in new home construction-particularly that of smaller, less expensive homes has also helped spur first-time buyer growth.
The Department of Housing and Urban Development (HUD) held a housing forum, "A New Era of Homeownership," to mark the beginning of National Homeownership Month, as declared by President Trump. The social and financial benefits of homeownership for Americans and the economy was a common thread throughout the entire forum. In his opening remarks, HUD Secretary Ben Carson emphasized the significance of homeownership, stating, "The importance of homeownership is apparent to all of us: security, certainty, safety, wealth creation, a path forward, self-sufficiency, a place to live with loved ones, to raise our families, the location of our neighborhood." Secretary Carson continued his remarks by expressing the "good news" of a steadily improving homeownership rate in the country, despite the rate remaining at a near historic low. In the second quarter of last year, the national homeownership rate, 62.9 percent, was at its lowest point in over fifty years. Carson announced that the current homeownership rate is 63.6 percent, saying "These figures represent more than paper, facts, titles, and mortgages. We can see the hopes and dreams, the aspirations and excitement of homeownership."
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