Savior or Looming Disaster? oversight will be required, as will preservation of the 30- year mortgage – or at least 30-year payment schedules. Fifth, the disposition of federal financial inter- ests must be settled. Is it entitled to further GSE profits? Can the federal government sell its war- rants in the open market, perhaps collecting several hundred billion dollars? Or, will it decide to defer any GSE changes and simply collect massive dividends each quarter? “Some very large institutional investors,” Inside Mortgage Finance reported in February, “are salivating at the chance to buy newly-issued Fannie Mae/Freddie Mac common, should the Treasury De- partment decide to exer- cise its option and sell its 79.9 percent stake in the two (very profitable) mort- gage giants to the public. Who are these institutional investors? Just go down the list of the nation’s larg- est institutional investors that like triple-A credits…” Sixth, until 2021 the GSEs are not covered by the general requirement from the Consumer Financial Protection Bureau (CFPB) to offer qualified mortgages with a debt-to-income (DTI) ratio of 43 percent or less. This exemption is known as the CFPB patch. According to the Amer- ican Banker, “unless the patch is extended or the CFPB eases underwriting requirements for all loans, nearly a third of loans

ership and the mortgage market that supports it for generations to come.” • > Continued from :: PG 43 Top 10 Metros with the Lowest Property Tax Rate were Laredo, Texas (0.35 percent); Honolulu (0.36 per- cent); Montgomery, Alabama (0.37 percent); Tuscaloosa, Alabama (0.39 percent); and Colorado Springs, Colorado (0.42 percent). Here are the other areas included in the top 10 metros with the lowest effective property tax rates in 2018:

backed by the GSEs could face new legal liability. Other government-backed loans such as those insured by the Federal Housing Administration have a similar exemption.” Seventh, the federal government — whether desired or not — must continue as the mortgage guarantor of last resort. As the NAR proposal explains, “the U.S. Treasury backstop would provide liquidity to ensure that the guarantors could continue operating and, crucially, to maintain confidence in the mortgage debt markets.” The Crapo proposal would have Ginnie Mae “provide a catastrophic government guarantee at the security level to cover tail-end risk, backed by the full faith and credit of the United States.” In either case, government guaran- tees will remain. “A stable mortgage market is in everyone’s best interests,” Pagliara, with Investors Unite, told the Housing News Report. “GSE reform does not have to reinvent the wheel. Modernization, improving the secondary mortgage market, and more clearly defining the role of gov- ernment in home finance can be accomplished while still respecting the rights of the shareholders In- vestors Unite represents. Winston Churchill once said, “you can count on Americans to do the right thing after they have tried everything else.” After ten years it is time to do the right thing: respect shareholder rights and strengthen home own-

• Colorado Springs, CO • Huntsville, AL • Provo-Orem, UT • Salisbury, MD-DE • Greeley, CO • Fort Collins, CO NATIONAL AVERAGE ANNUAL COMPARISON Out of the 219 metropoli- tan statistical areas ana- lyzed in the report, 120 (55 percent) posted an increase in average property taxes above the national average of three percent, including Los Angeles (five percent increase), Dallas-Fort Worth (eight percent increase), Washington D.C. (four percent increase), Atlanta (seven percent increase), and San Francisco (seven percent increase). •

• Laredo, Texas • Urban Honolulu, HI • Montgomery, AL • Tuscaloosa, AL


American Association of Private Lenders


Anderson Business Advisors 83 Information Management Network IMN Supplement: 1, 4, 5, 8, 9, 14, 15 National Association of Rental Property Managers 30-32 National Real Estate Insurance Group 11; IMN Supplement: 6-7 Norada Real Estate Investments 84 Out of Town Landlord 77 PointCentral IMN Supplement: 14-15 Radius Renovation Group 23 Real Property Management 44-46 Real Wealth Network 42; IMN Supplement: 12-13 Recon Realty (Andy Williams) 12-13 Renters Warehouse 2-3 RentFax 50 Roofstock IMN Supplement: 10-11 SmartRent IMN Supplement: 2-3 Think Realty 6 & 82 US Probate Leads 32

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