Housing Is for Everyone — No Exceptions

Daily Real Estate News | Wednesday, July 20, 2016 At the “Opening Doors” panel during the “Housing for All” conference sponsored by NAR, moderator Sherri Meadows, 2016 NAR vice president, discusses issues with panelists (from left) Megan Hustings, interim director with the National Coalition for the Homeless; Marietta Rodriguez, vice president for national homeownership programs with NeighborWorks America; and Diane Yentel, CEO of the National Low Income Housing Coalition. What a difference a roof makes. At a symposium in Washington, D.C., this week, the National Association of REALTORS® shed light on the plight of individuals and families facing homelessness and housing insecurity. “Tonight, you and I will lay our heads on a pillow with a roof over our heads, yet 500,000 people in our nation will not,” said NAR Vice President Sherri Meadows, citing data on homelessness from the U.S. Department of Housing and Urban Development. The 2015 HUD report showed the number of homeless was declining, Meadows told symposium participants, yet the number of U.S. families living with housing insecurity is on the rise. “According to the Center for Housing Policy’s Housing Landscape 2016 Report, in 2014, some 17.6 million households were severely burdened by housing expenditures, spending more than half of their income on housing costs,” she said. Meadows, an Ocala, Fla., practitioner, spearheaded the July 18–19 symposium, which focused on finding solutions and opening hearts. Panelists explored the causes of homelessness and discussed creative approaches to expanding affordable housing. Participants toured a supportive housing facility, which combines housing with social services, and packed more than 30,000 meals in a “Meals of Hope” food packing event. Speakers included Dick Larimer, senior content manager for Make Room, a project that gives voice to renters and elevates rental housing issues, and Jeremy Cowart, whose Purpose Hotel kickstarter campaign is an intersection between philanthropy, entrepreneurship, empowerment, and design. Opening the conference, NAR President Tom Salomone said, “We are honored to join forces with so many housing industry leaders, practitioners, and others who are making strides to fight homelessness and to develop effective affordable housing solutions. As REALTORS®, we see it as our job to help build and maintain healthy and strong communities that are accessible and welcoming for everyone, no matter the income level.” Focus on Action Matching words to action is a hallmark of REALTORS®. After the 2008 market crash, the National Association of REALTORS® worked closely with lawmakers and regulators to drive a housing recovery and seek relief for Americans who were underwater. But in recent years, with rents and housing prices soaring in many parts of the country — in many cases beyond their pre-crash peak — the recovery has left millions of Americans struggling to find safe, affordable housing. REALTORS® see those struggles every day, and in May, NAR’s Housing Opportunity Committee proposed, and the board of directors approved, a policy supporting “cost-effective” and “evidence-based” approaches to ending homelessness. A fall REALTOR® Magazine article (“A Dream Too Far,” November/December 2015) highlighted some of the causes, chiefly the economic disparity that’s at the root of housing insecurity. In that article, NAR Chief Economist Lawrence Yun commented on the growing income gap and its effects on homeownership: “It’s certainly not in the interest of broader America,” Yun told managing editor Meg White, “and it’s something that everyone should be concerned about.” Meadows said she felt charged by the association’s decision to take up the cause. “Years ago, we were talking about the housing ladder and the importance of getting on that first rung of homeownership,” Meadows said. “Well, we need to lower that first rung because too many of our families and our veterans are without a roof over their heads — or they’re just a paycheck or two from homelessness.” In fact, REALTORS® around the country are leading the charge on housing opportunity, often with the support of NAR grants. In Austin, Texas, REALTORS® have been helping to meet the housing needs of veterans. In Central Virginia, REALTORS® helped Culpeper County officials update a 1964 comprehensive housing plan. In Florida, Meadows made reducing family homelessness one of her key priorities when she led the Florida REALTORS® in 2014. These and other efforts are discussed in depth in the summer issue of NAR’s On Common Ground magazine. What real change can REALTORS® hope to make? Meadows pointed to speaker Jeremy Cowart’s remarkable “I’m possible” video for a lesson on what one person can accomplish. “It’s about the effort,” she said. “I like to use the Mother Teresa quote: ‘I alone cannot change the world, but I can cast a stone across the waters to create many ripples.’”

Measuring Progress in the Housing Market

HUD’s housing scorecard provides a monthly snapshot of our nation’s housing market and measures how the Administration’s initiatives are serving Americans. Looking back on May, we witnessed notable progress among key indicators: sales of new and existing homes hit high levels and newly initiated foreclosures have remained below the pre-crisis monthly average for more than a year now. While housing is being reenergized, there is still a need to support programs that help more Americans recover from the Great Recession. Here’s a look at some of the top trends: April purchases of new homes surged to the highest pace in eight years. New home sales climbed 16.9 percent in April to 610,000 (SAAR)–the highest level since January 2008–and were 23.8 percent above a year earlier. In addition, March sales, at 531,000 units, were stronger than previously reported. New home sales have been higher than the 500,000 mark for the past six consecutive months. Monthly data on new home sales can be volatile, however, and are often revised. (Source: HUD and Census Bureau). Sales of previously owned (existing) homes reached a three-month high in April. The National Association of Realtors® (NAR) reported that sales of existing homes (including single-family homes, townhomes, condominiums, and cooperatives) rose 1.7 percent in April to 5.45 million (SAAR) from a 5.36 million pace in March and were 6.0 percent higher than a year ago. Sales in the Midwest jumped 12.1 percent to a 1.39 million pace; purchases were also up in the Northeast. Existing home sales have been above the 5.0 million mark for 13 of the past 14 months. Foreclosure starts and completions fell in April. Lenders started the public foreclosure process on 43,793 U.S. properties in April, a decrease of 8 percent from March and 15 percent from a year earlier. Newly initiated foreclosures have been below the pre-crisis (2005 and 2006) monthly average of 52,280 for more than a year. Lenders completed the foreclosure process (bank repossessions or REOs) on 33,518 U.S. properties in April, a decrease of 1 percent from the previous month and 26 percent less than a year ago. This is the second annual decline in foreclosure completions in the past 14 months. The Administration’s foreclosure mitigation programs continue to provide relief for millions of homeowners as the recovery from the housing crisis continues. In all, more than 10.5 million mortgage modifications and other forms of mortgage assistance arrangements were completed between April 2009 and the end of April 2016. More than 2.6 million homeowner assistance actions have taken place through the Making Home Affordable Program, including nearly 1.6 million permanent modifications through the Home Affordable Modification Program (HAMP), while the Federal Housing Administration (FHA) has offered more than 3.2 loss mitigation and early delinquency interventions through April. These Administration programs continue to encourage improved standards and processes in the industry, with lenders offering families and individuals more than 4.7 million proprietary modifications through March (data are reported with a two-month lag). This is just a brief overview of the May Housing Scorecard. For more information about the health of the housing market and how Administration programs are helping families please visit: www.hud.gov/scorecard. Katherine O’Regan is the Assistant Secretary for the Office of Policy Development and Research.

Older Americans Ready to Tackle Housing Market, Survey Says

Older Americans Ready to Tackle Housing Market, Survey Says Three out of four homeowners born before 1961 are confident they will have a financially comfortable retirement according to the Freddie Mac 55+ Survey, a comprehensive survey of the housing perceptions and preferences of Americans over the age of 55. The first Freddie Mac 55+ Survey also found that the majority of homeowners in this age group were very satisfied with their homes, their communities and their quality of life. Consistent majorities also said homeownership makes financial sense at almost every stage of adult life, whether or not a person is married or has children. “The overwhelming message of the Freddie Mac 55+ Survey is that homeownership works. The American Dream delivered greater financial stability and satisfaction to the homeowners who lived through every recession since the 1970s, including the housing crisis of 2008,” says Dave Lowman, executive vice president of Single-Family Business at Freddie Mac. In addition, while many over the age of 55 would prefer to age in their current home, nearly 40 percent said they would prefer to move at least one more time, and 70 percent of those said they are likely to purchase their next home. According to Lowman, this will create significant opportunities and challenges for the industry for years to come. “The decisions the nation’s Baby Boomers and other older homeowners make will have an enormous impact on the demand for housing and new mortgage credit for the foreseeable future,” Lowman says. “Whether they buy new homes or decide to refinance and renovate their current ones, the size of this generation and the fact that they hold close to two-thirds, approximately $8 trillion, of the nation’s home equity makes it very important that we watch what they do.” Overall, 76 percent of homeowners over the age of 55 are confident they will have a financially comfortable retirement, according to the Freddie Mac 55+ Survey. Majorities in every demographic group surveyed share this confidence to varying degrees: African-Americans (77 percent), Hispanics (64 percent), Asians (80 percent), homeowners who are currently working (74 percent), as well as homeowners earning less than $30,000 (55 percent). The Freddie Mac 55+ Survey also shows consistently strong links between homeownership and a person’s satisfaction with their home, community and financial situations. Specifically, 59 percent of homeowners are “very satisfied” with their communities, 64 percent with their current home, and 54 percent with their quality of life. A majority also believe homeownership makes financial sense for most Americans. Specifically, 96 percent feel homeownership makes financial sense for people who are either married with children or between 35-49 years of age. Smaller majorities said homeownership makes sense for people over 55 (87 percent), married couples without children (85 percent), single people with children (79 percent), and single people without children (53 percent). In terms of helping others become homeowners, nearly 25 percent of the respondents say they have already helped someone financially with a down payment. Why Baby Boomers Drive the Housing Market for Millennials The Freddie Mac 55+ Survey also identified a number of other opportunities and challenges for the housing industry that will stem from the decisions Baby Boomers and other older homeowners make over the next few years. For example, 63 percent of the 55+ homeowners surveyed say they prefer to age in place if they had complete control over it. However, nearly 40 percent indicate they would prefer to move at least one more time. This suggests nearly 27 million homeowners over age 55 may move again. When asked when they expect to move next, 13 percent think they will move within four years. Of those homeowners who would consider moving, 12 percent believe their next home will be more expensive than their current one, while 37 percent believe it will be in the same price range, and half believe it will be less expensive. At the same time, 23 percent of homeowners say they would have to make major renovations in order to age in place. 55+ers cite cost and convenience as the top factors influencing whether to move and where to live: affordability of living in a particular community (46 percent); having the amenities needed to live there for many years after I retire (44 percent); less maintenance (41 percent); having a place where I was no longer responsible for caring for the property (e.g. yard work, snow removal) (30 percent); proximity to other family members (31 percent); being in a walkable community (28 percent); having abundant services for adults my age (25 percent); access to public transportation (17 percent); warmer climate (19 percent); having a place that is smaller than my current home (e.g. downsizing) (19 percent). For more information, visit www.freddiemac.com.

What if No One Wants to Service More Loans?

For laughs all you have to do is read the news, and this story will fit right in with anyone’s 5th grade sense of humor. The Union Recorder reports on a story about Ellen DeGeneres being sued due to her making jokes about a Georgia Realtor's name. Some might ask, how can a person refrain from it? I won't, however, and leave it up to the reader to form their own impression. In other, not-so-funny, legal news, the former president and CEO of Virginia's Monarch Mortgage was indicted this week. Are storm clouds gathering in the market for mortgage servicing rights? Some industry insiders are suggesting that it could be the perfect storm of the unintended consequences of regulation and a supply & demand mismatch. During the Viet Nam War, a popular bumper sticker asked, "What if they gave a war and nobody came?" Some are asking, "What if originators produced servicing and nobody wanted it?" As this commentary mentioned nearly a month ago, banks are staring at the Basel III rules barreling down on them. As banks know this will impact the amount of servicing that can be held, and it will be interesting to see how this plays out in servicing values. Different types of loans will carry different weights in terms of capital requirements, and overall banks will have caps. Lenders are starting to ask the large bank aggregators such as Wells Fargo, US Bank, and Chase about their long-term appetite for servicing - both purchased through TPO channels or brought in through retail branches. These same banks have seen their TPO volumes grow nicely in the last few months as a) non-bank investors, who arguably were paying too much for servicing in 2015 in anticipation of rising rates, have scaled back the price they are paying for servicing - back with the peloton, and b) the co-issue bid price for servicing, where lenders sell the asset directly to Freddie or Fannie and then divert the servicing to companies like Pingora, Lakeview, Roundpoint, Seneca Mortgage Servicing, or the like, has also dropped...and in some cases disappeared entirely. Given that co-issue execution, until recently, accounted for over 60% of the servicing sales, in effect by-passing the bulk bidding process by some firms, this drop in demand can't but have a material impact on servicing values, and therefore the price to consumers. Mortgage rates dropping .25% since the Fed's mid-December short-term rate increase hasn't helped the bid for servicing either. Lenders who have reported earnings for the first quarter of 2016 have seen huge markdowns on their servicing book, directly hitting their balance sheets and revenue. The rate movement, coupled with consistently increasing servicing costs and subdued capital raising prospects among most buy-side private money firms, has dampened pricing and decreased demand. And servicing a loan is more expensive than some originators thought it would be. As Steve Fleming from Phoenix Capital pointed out, "Sellers of servicing rights must also consider the bulk vs. flow dilemma. Many of Phoenix Capital's clients who regularly monetize MSRs chose to engage in flow transactions the past years, leaving few of them with substantial bulk selling needs presently. A flow transaction minimizes a seller's exposure to the negatively convex MSR asset in declining rate environments and spares them the distress of largely untraded bulk transaction attempts." Bulk & mini-bulk transfers have represented about a third of total servicing transfers. (Cash-window servicing released, primarily through the Freddie Mac CSR program, accounts for about 5%.) And yet, on the supply side of the market, the mortgage "factories" of originators continue to churn out units, and each unit must be serviced. Michael Ehrlich with ThomsonReuters recently sliced and diced the numbers, and reported that "The top non-bank servicing sellers were Stearns, loandepot.com, CMG, Prospect, Fairway Independent, and Impac, while the top depository bank sellers of servicing were Flagstar Bank, PrimeLending (PlainsCapital), Discover Home Loans, Fremont Bank, and Provident Savings Bank. Of course small and mid-size lenders immediately see that many of these companies selling are the same companies that are buying servicing from them! Welcome to the world of servicing transfers, as smaller companies sell to larger ones, and larger ones fine tune their portfolios or take advantage of pricing inefficiencies to sell portions of their servicing book. Of course loan officers hear from their clients and field questions as the consumer receives servicing transfer letters. There are several factors a seller needs to consider when looking at co-issue vs mini-bulk flow servicing options. In co-issue transactions where the servicer is identified at the time of lock, such servicing transfers will not require the RESPA notification for a change in servicer. This is true even where the first payment is taken by the servicing seller. Mini-bulk transactions will require borrower notification of a change in servicer as per RESPA. Generally, only sellers with their own in-house servicing platform will sell servicing flow mini-bulk (pool servicing and sell at end of quarter). If using a sub-servicer, then it is usually operationally advantageous to co-issue rather than sell mini-bulk. Of course other issues and events impact the value of servicing. State-level delinquency and foreclosure laws & timelines impact values. Servicing tends to be less valuable in states where servicers have lengthy and expensive procedures to complete; servicing values are different for FHA & VA loans versus conventional conforming. And for any company that actually uses program guideline drivers to assess servicing costs, (and not just the value of average note rate against par.... Along with loan amount, state, etc...) the recent change in the HUD Handbook will affect FHA servicing values. This will most likely affect servicing value in states where T&I are high - Texas, OR, CA properties with Mello Roos, etc., and also judicial foreclosure states where the servicer has to advance T&I for a longer period of time while the foreclosure is resolved in courts. This basically means that servicers will have to carry unpaid T&I cash advances on their balance sheets with no ability to charge interest for those advances to the delinquent borrower, who is in effect 'borrowing' the money by not making their payment. 'FHA: HUD Handbook 4000.1 issued March 14, 2016 - For mortgages assigned a case number on or after March 14, 2016, the Mortgagee may assess a late charge, not to exceed 4% of the overdue payment of Principal and Interest....'" But what if these larger companies, accustomed to selling billions of dollars of servicing every quarter, can't find a ready outlet for the asset? What if there is no natural buyer of servicing? What if banks of all sizes, due to Basel III, either must sell servicing or can't buy any more through correspondent or wholesale channels? What if non-bank servicers, due to regulator-imposed capital restraints, can't buy any more? The laws of supply and demand are relatively harsh, and the price will drop. And the price decline will be seen by smaller and mid-sized lenders as well, of course. Capital markets staff have already seen a drop in the value, and therefore price, of servicing. And of course this flows quickly to the prices that consumers see on rate sheets. We are already seeing this happen. What changes might impact servicing values, and therefore prices to consumers? Assuming the supply won't be adjusted, that leaves the demand for servicing. And that demand is function of regulatory factors, potential liability in servicing, liquidity, and capital requirements. Talk to your regulator! Pools of servicing continue to be offered, and purchased. For a couple quick examples, MIAC is the exclusive rep for a $299M FNMA/FHLMC/GNMA MSR portfolio. The portfolio is being offered by a mortgage company that originates loans with a geographic concentration in Texas. The seller will be providing full reps & warrants for the loans. The portfolio characteristics are: $181,814 average loan size, 99.86% FRM, 62.15% FNMA A/A, 0.58% FHLMC ARC and 37.28% GNMA II, 4.379% WAC, weighted average loan age 11 months, 708 WaFICO, 100% retail, with a geographical concentration in Texas. Bids are due June 15th on this package. Phoenix Capital's Project Arcade is a $83M FNMA & $8.5M GNMA servicing rights package. The conventional portion of the deal is 100% FNMA A/A, 75% Fixed 30, 25% Fixed 15, WAC of 3.921% (F30)/3.411% (F15), $202K average loan balance, Top States: TX 78%, CO 12%, OK 8%, 749 WaFICO, 78% WaLTV, 89% Owner Occupied. The government portion is 82% FHA, 18% VA, 0% USDA, 100% Fixed 30, WAC of 4.384% (F30), $156k average loan balance, top states: TX 82%, CO 9%, OK 4%, 657 WaFICO, 96% WaLTV, 92% purchase, with 100% Owner Occupied properties. And this week Mortgage Industry Advisory Corporation (MIAC), offered up another one: a $1.5 billion FNMA and FHLMC mortgage servicing portfolio. "The portfolio is being offered by a mortgage company that originates loans with a national geographic concentration. The Seller will be providing full representations and warranties for the loans included in this offering. Key portfolio characteristics include: $173,497 Average Loan Size, 97% fixed rate, 79.13% FNMA_A/A and 20.87% FHLMC_3_ARC, Weighted average interest rate of 4.23%, weighted average delinquency rate of 3.29%, weighted average loan age of 15 months, weighted average FICO of 733, 99% Retail/Direct, with a national geographic concentration. (Bids are due 6/22.) Besides the value of servicing, what else makes up rate sheet prices? The mortgage-backed security market, of course. And Thursday was another relatively quiet day. As I mentioned yesterday, aside from a little intra-coupon movement, and some small shifts between agency MBS, not much happened to impact rate sheets in any kind of meaningful way after we saw improved prices at the start of the day. The Fed continues to help support the market by using monies from early payoffs of existing securities to buy $2-3 billion of various agency securities of various coupons. This morning we've had nothing in the U.S., and little news overnight, but at 7AM PDT we have some minor University of Michigan Sentiment Index figures. Thursday started and ended with the 10-year yield around 1.68%; this morning it is at 1.66% with agency MBS prices better by .125. Jobs and Announcements In wholesale personnel news Michigan Mutual "is thrilled to announce that George Andrews, Michael McCarthy and Rocky Amaral have joined the company's Wholesale Sales team in the West! George (408.498.5370) is welcomed as Regional Sales Manager, responsible for their Northwest Region including Northern CA, OR, and WA, reporting directly to Al Crisanty, Director of Wholesale Lending. Michael and Rocky have joined George's team as Account Executives. Mike (541.291.9980) is based in Oregon and Rocky (408.421.4284) is based in Northern California. Michigan Mutual's management is very excited to have them on board as they continue to build and expand their National Sales Team. Please contact George if you are a talented wholesale AE in the territory and are looking for an exciting opportunity in sales." Michigan Mutual, Inc., an agency direct/seller/servicer/issuer headquartered in Port Huron, Michigan - currently licensed in more than 30 states. A premier national retail mortgage banker is seeking a proven mortgage regional manager for the South Eastern Market. The ideal person is a highly motivated and proven sales professional to lead a segment of the company's developing South Eastern market. "The candidate must possess a make-it-happen attitude, high integrity and extraordinary leadership skills to mentor both veteran and less-experienced loan originators and help them deliver top performances from all members of the sales team. A demonstrated history ofsuccessful territory and account management by meeting sales and profitability targets, as well as recruiting top talent, leading regional marketing efforts, establishing new markets and generating incremental revenue is important." Qualified candidates should inquire through me and I will send your information along. (Please specify the opportunity.) For ops folks, New American Funding's continued growth has created the need for an Operations Center in Tampa, FL and new branch in Tempe, AZ. "We are hiring in multiple departments in Operations for Funding, Processing, Underwriting and more! The company is committed to its steady expansion reaching out to consumers and real estate partners nationwide and is in need of experienced and Licensed Loan Officers for both its retail branches across the nation and regional call centers in Tustin, CA, Riverside, CA, Tempe, AZ, Plano, TX and Southfield, MI. With their continued growth, New American Funding, is rated as one of America's Top 100 Mortgage Companies by Mortgage Executive Magazine six years in a row." To see a list of openings please visit www.newamericanfunding. com/careers, email your resume for consideration to Baron Obrien, VP of Talent Acquisition (877-478-5476).

Many Baby Boomers Plan to Move Again

About 60 percent of home owners age 55 or older say they would prefer to age in place if they had complete control over their living arrangements. That said, nearly 40 percent indicate they would prefer to move at least one more time. Working with Boomers Help Clients Find a Home for Life Talk Up Age-in-Place Home Possibilities Housing Stock Not Suitable for Aging? That means nearly 27 million home owners may move again, according to the Freddie Mac 55+ Survey. Of those baby boomers who expect to move, 13 percent say they will likely move within four years. "The decisions the nation's baby boomers and other older home owners make will have an enormous impact on the demand for housing and new mortgage credit for the foreseeable future," says Dave Lowman, executive vice president of Single-Family Business at Freddie Mac. "Whether they buy new homes or decide to refinance and renovate their current ones, the size of this generation and the fact that they hold close to two-thirds, approximately $8 trillion, of the nation's home equity makes it very important that we watch what they do." Twelve percent of those baby boomers who would consider moving say they expect their next home to be more expensive than their current one. The survey showed that thirty-seven percent believe their next home purchase will be in the same price range as their current home, and half say that it will be less expensive. Here are some additional findings from the survey: 76% of baby boomers surveyed say they are confident they will be financially comfortable in retirement. 59% of home owners say they are "very satisfied" with their communities, 64 percent with their current home, and 54 percent with their quality of life. Nearly 25 percent of the respondents say they have already helped someone financially with a down payment for a home. The top factors influencing whether to move and where to live: affordability of living in a particular community (46%); having the amenities needed to live there for many years after I retire (44%); less maintenance (41%); having a place where I was no longer responsible for caring for the property (e.g. yard work, snow removal) (30%); proximity to other family members (31%); being in a walkable community (28%); having abundant services for adults my age (25%); access to public transportation (17%); warmer climate (19%); having a place that is smaller than my current home (e.g. downsizing) (19%).

71% of those with student debt say it delays homeownership: Survey

Not only is student loan debt delaying first-time homebuyers, it is delaying them for a long time. Seventy-one percent of non-homeowners with debts from student loans said the burden of those monthly payments was keeping them from buying a home. More than half said it would likely continue do so for more than five years, according to a new study by the National Association of Realtors and SALT, a consumer literacy program provided by nonprofit American Student Assistance. Student debt is also keeping 4 in 10 graduates from moving out of a family member's house. The survey of 3,000 people conducted in April covered only those who are making on-time payments on their student loans. The largest share of those postponing homeownership was among older millennials, aged 26 to 35, and among those carrying the most debt, about $70,000 to $100,000. Still, no matter what the amount of debt, more than half of non-homeowners in each generation report that it is postponing their ability to buy a home. Nearly half of younger millennials polled currently live with family , some paying rent, some not. College graduates overall are more likely to have stable employment and more likely to earn enough to buy a home; student loan debt, however, is clearly outweighing the benefits of a college degree. Interest rates on student loan debt can be considerably higher than mortgage interest rates. "A majority of non-homeowners in the survey earning over $50,000 a year — which is above the median U.S. qualifying income needed to buy a single-family home — reported that student debt is hurting their ability to save for a down payment," said Lawrence Yun, the Realtors' chief economist. "Along with rent, a car payment and other large monthly expenses that can squeeze a household's budget, paying a few hundred dollars every month on a student loan equates to thousands of dollars over several years that could otherwise go towards saving for a home purchase." Eighty percent of the millennials surveyed said student debt was hampering their ability to save for a down payment. There are low down payment options for first-time buyers, like government-insured FHA loans at 3.5 percent down or Wells Fargo's latest offering at 3 percent down , but these loans have strict limits on the amount of debt the borrower can carry in relation to income. Student loan debt is a major factor in that. Student loan debt is also holding back potential sellers. Nearly one-third of current homeowners surveyed said they were delaying selling because of it. Nearly one-fifth of those said it was simply too expensive to move and upgrade because of debt payments. Seven percent their credit had been scarred by issues with student loans and 6 percent said they were still underwater on their mortgages because student debt limited their ability to pay more into their home loans. All of this is playing into the very low inventory problem plaguing today's housing market. Younger homeowners are unable to afford a move up, and older homeowners are still housing their adult children, unable to downsize. With so few listings for sale, prices continue to push higher. The overall market is starting to show some resistance to these high prices, but the gains are not easing very much.

Down Payment Aid Programs Save Buyers $17k

Down payment assistance programs can help home buyers save big over the lifespan of a loan. On average, qualifying home buyers can save $17,766 over the life of the loan, according to a new report of 513 counties nationwide released by RealtyTrac and Down Payment Resource. Read more: Banks Rush to Offer 3% Down Payment Loans The total savings breaks down to an average of $5,965 on the down payment for a median-priced home, and an average savings of $11,801 on monthly house payments over the life of the loan for a median-priced home, according to the report. “Saving for a down payment can be difficult for prospective first-time homebuyers given the absence of substantial wage growth in recent years combined with the burden of student loan debt many are struggling under,” says Daren Blomquist, senior vice president at RealtyTrac. “Even just a 3 percent down payment requires 14 percent of annual wages on average across the 513 counties we analyzed, and in 67 counties a 3 percent down payment requires more than one-fifth of annual wages. The study shows that the following markets are where buyers who use down payment assistance programs have the biggest total dollar savings compared to buyers not using down payment assistance: Kauai County, Hawaii ($80,148 total savings over the life of the loan); Placer County, California, in the Sacramento metro area ($78,539); San Francisco County, California ($77,411); Orange County, California in the Los Angeles metro area ($74,268); and Shasta County (Redding), California ($70,806). “Home ownership programs not only help buyers overcome the initial cost of purchasing a home, but also produce a compounding positive impact on the home owner’s saving and wealth-building capability,” says Rob Chrane, CEO at Down Payment Resource. “In fact, these programs are now the last frontier in the fight to preserve home ownership affordability. Rates are never going to be substantially lower, and home prices continue to trend higher.”

MidPen proposes affordable Moss Beach housing

MidPen proposes affordable Moss Beach housing: Nonprofit to present designs for midcoast redevelopment July 09, 2016, 05:00 AM By Samantha Weigel Daily Journal With the cost of living indiscriminately rising across the Bay Area, one of the region’s most prominent affordable housing developers is hoping to assuage an apprehensive coastal community and create residences for low-income workers at an 11-acre Moss Beach site. MidPen Housing is in the midst of conducting public outreach as it seeks to redevelop a former Navy barracks site off Highway 1 near Sierra Street into a medium-density rental community targeted to those already working on the coast. On Monday, MidPen will present two preliminary design proposals during an open house where attendees can, for the first time, see visuals of the nonprofit developer’s plans to keep nearly half of the land as open space while creating up to 80 new apartments. Although zoning allows for up to 176 units, the nonprofit incorporated public feedback as it scaled back and seeks to complement the surrounding neighborhood. Spread between two-story duplexes and triplexes, the proposal includes a mix of one-, two- and three-bedroom units. It would also be the first residences set aside as affordable on the midcoast, which includes Montara, Moss Beach, El Granada, Princeton and Miramar, said Felix AuYeung, MidPen’s director of business development. “Obviously affordable housing in the Bay Area is needed everywhere, and along the midcoast, you will see that there are very few apartments and certainly no restricted affordable rentals or homes that are part of that housing stock,” AuYeung said. This project “would expand the range of housing options that are available for people that work there and make that economy work.” The majority are people in the accommodations and food services industries, who are relied upon to support tourists visiting the coast. Other employers include local schools, fire stations, shops, a hospital, the water and sewer districts, airport, industrial warehouses and agricultural sites, AuYeung said. Of the approximate 1,364 jobs on the midcoast, more than 1,000 live outside the area and 44 percent commute more than 10 miles. The majority also make around $40,000 a year, AuYeung said, citing census data. MidPen will do what is legally possible to give preference to those already working on the coast and although exact requirements are yet to be determined, the units will likely be set aside to those who make between 30 percent and 60 percent of the area’s median income. The 2016 area median income in San Mateo County is about $117,200 for a family of four. Traffic and preserving open space were primary concerns expressed by the public during the nonprofit’s first community workshops. Thorough environmental studies will be conducted later on and AuYeung noted targeting those who work in the area would ideally reduce in-commute traffic. Census data show the majority of those already living on the midcoast commute to work outside the area and congestion during summer weekends and special events is an existing problem. Therefore, the new development would likely contribute only a small percentage to current conditions, AuYeung said. But developing on the coast has long been a sensitive issue and the surrounding neighborhood has expressed concerns. Although the site received approvals for 148 units several decades ago, AuYeung said they’re trying to be mindful and conform with the surrounding environment of primarily single-family homes. While housing developers typically try to maximize a property, AuYeung said they’re approaching this particular site differently. “We’ve taken very deliberate steps to change the scale of our buildings, which has some cost ramifications obviously, but it’s the right thing to do and hopefully it will fit and be well integrated with the existing neighborhood,” AuYeung said. A separate single-story community building would house property management offices as well as a large meeting room and homework area for kids. That, along with outdoor playgrounds, would be accessible to the public, AuYeung said. MidPen’s proposal is also consistent with the county’s general plan for the area and the site has been designated as an appropriate locale for an affordable housing development — it even has requirements that a large portion of any residential complex must have below-market-rate units, AuYeung said. There are few other developable areas on the midcoast and this is one of two properties identified by the county as affordable housing opportunities, according to MidPen. Roughly bordered by Carlos, Sierra, Lincoln and 16th streets, the Moss Beach property is currently owned by the California School Employees Association, which listed it for $4.9 million in 2015 but reportedly couldn’t find another buyer. AuYeung said the nonprofit is under contract to purchase the site for less than the asking price and noted others may have been deterred due to the entitlement process. In total, MidPen estimates it would cost about $33 million to purchase and redevelop the property, he said. Funding would primarily come from federal tax credits, as well as a standard loan and assistance from the county, AuYeung said. Next steps include gathering more input from the public about which of the proposals they prefer, then presenting designs to the non-regulatory Midcoast Community Council. Formal approvals are needed from the county as well as the California Coastal Commission, AuYeung said. Monday evening, MidPen’s architect will present visuals of the preliminary designs will for the first time seeking public input. AuYeung said he hopes those weighing in will help shape the proposal “so we can put the best possible development on that site.” The open house is 3 p.m. to 8 p.m. Monday, July 11, at Farallone View School, 1100 Le Conte, Montara. Another open house is scheduled Thursday, Aug. 18. Visit midcoastcommunitycouncil.org for more information about the site and workshops. - See more at: http://www.smdailyjournal.com/articles/lnews/2016-07-09/midpen-proposes-affordable-moss-beach-housing-nonprofit-to-present-designs-for-midcoast-redevelopment/1776425164795.html#sthash.K5FLbCfF.dpuf

San Mateo County July 4th Fireworks Guide 2016: Where To See The Shows

SAN MATEO COUNTY, CA -- Are you looking to catch a July 4th fireworks show, parade, picnic or festival in San Francisco or in one of the many towns on the Peninsula this year?
Check out the below listings of fireworks celebrations and events for 2016. Patch will update this article with additional event information as it becomes available.
REDWOOD CITY: July 4th Parade 5K Run: Downtown Redwood City
REDWOOD CITY: July 4th Run, Parade, Festival, Fireworks: Redwood City
REDWOOD CITY: July 4th Pancake Breakfast: Redwood City Fire Department
FOSTER CITY: Foster City Fourth of July Celebration, Fireworks 2016
PACIFICA: 4th of July Celebration at Frontierland Park, Pacifica
SAN MATEO: July 4th in the Park Festival: San Mateo
HALF MOON BAY:Half Moon Bay's 4th of July Parade
MENLO PARK: 4th of July Parade, Festival - Menlo Park
MOUNTAIN VIEW:July 4th SF Symphony with Fireworks: Mountain View
SAN BRUNO: Dale Wilson Fourth of July Tournament: San Bruno
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SAN FRANCISCO: July 4th Fireworks on San Francisco Bay
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How to Install a Standard Washer & Dryer

Install your own washer and dryer to avoid the laundromat.

Moving into your new home may finally allow you to purchase a new washer and dryer, so you do not have to lug your laundry between the laundromat and home. For the first-time home buyer, installing a standard washer and dryer may be a bit intimidating, and you might consider paying for professional installation. Rather than pay a professional, keep that installation money in your pocket and install your appliances yourself with just a few appliance accessories and a few tools.

1

Insert hose washers into the ends of the hot and cold water supply hoses. Screw the hoses onto the water supply valves in the laundry area wall. Place washers in the opposite ends of the hoses and attach them to the inlet valve connectors on the back of the washer. Ensure the hot water line connects to the hot water inlet valve.

2

Thread the washer drain hose through a U-shaped drain hose holder, which will keep the drain hose from accidentally slipping from the drain. Insert the drain hose and holder into the drain pipe.

3

Plug the washer into the wall outlet. Turn on the washer’s water supply valves.

4

Push the washer into its installation location, and then place a level across the top of the washer. Use an adjustable wrench to turn the front leveling feet clockwise or counterclockwise to ensure the washer is level from left to right.

5

Tilt the washer toward you, so the rear feet lift off the floor about 3 inches. Gently place the washer back down on the floor. This automatically adjusts the self-leveling rear legs of the washer.

6

Check your dryer's power cord to ensure the outlet and the plug match. Dryer cords have either four prongs or three prongs. If the plug does not match the outlet, change the power cord.

7

Remove the power cord access plate screws to take the plate off the back of the dryer. Loosen the screws holding the power cord to the power block. Loosen the two screws on the exterior of the strain relief connector securing the power cord to the dryer body. Pull the original cord from the dryer.

8

Thread the end of the new dryer cord through the strain relief connector. Slide the white, or center, power cord wire beneath the center screw on the power block. Slide the remaining black and red wires beneath the right and left screws; it doesn't matter which black or red colored wire attaches to the right or left screw, but the white wire must always attach to the center screw. If your power cord has a green wire, slide it beneath the green screw along the edge of the block opening.

9

Tighten all the screws on the block and the two screws on the strain relief connector. Replace the power cord access panel.

10

Slip a dryer vent clamp over one end of a length of flexible dryer duct. Slide the vent over the dryer vent outlet. Tighten the screw on the dryer vent clamp. Use another vent clamp to secure the dryer vent over the vent opening in the wall.

11

Push the dryer into its installation location, taking care that the vent isn’t kinked or bent, as this could cause a dryer to overheat. Shorten the vent with utility shears or rearrange it to remove the kinks if necessary.

12

Plug the dryer’s power cord into the dryer wall outlet. Use the same steps to level the dryer as you did with the washer.

Things You Will Need

• Hose washers
• Hot and cold washer supply hoses
• Drain hose holder
• Level
• Adjustable wrench
• Screwdriver
• Three- or four-pronged dryer cord
• Dryer vent clamps
• Dryer vent hose
• Utility shears

Tip

• If you live in a mobile home, or your home was built after January 1, 1996, the National Electrical Code requires the installation of a four-prong grounded dryer outlet. Any homes, with the exception of mobile homes, built prior to this date, have three-prong or four-prong outlets installed, depending on the original builder’s requirements. The NEC did not require older homes to convert to a grounded outlet.

Warning

• Do not attempt to change the outlet to fit the dryer cord, as this could void your homeowner’s warranty. Should a fire incur as the result of changing the dryer out, your homeowner’s insurance could deny your claim.