The House overwhelmingly passed the appraisal bill known as the Homebuyer Assistance Act of 2019. Alternative valuations could drive up costs for real estate consumers. A coalition calls for the elimination of the DTI requirement from QM lending rules. Some housing markets are more at risk for a downturn than others. Keep reading for the latest in appraisal industry news.
Appraisal bill passes with bipartisan support
The Homebuyer Assistance Act of 2019 passed with overwhelming bipartisan support in the House. The bill is supported by many major appraisal trade associations, including The Appraisal Foundation (TAF). In a press release on Friday, TAF stated, “this bill expands opportunities for state-licensed appraisers to once again perform appraisals for FHA loans without having to become state-certified.” Get the scoop here.
Lenders want to eliminate DTI cap
Four of the biggest mortgage lenders in the U.S.—Bank of America, Quicken Loans, Wells Fargo, and Caliber Home Loans—are leading a coalition that is calling on the CFPB to do away with the Qualified Mortgage (QM) rule’s debt-to-income ratio requirement. Read the full story here. Get additional commentary here.
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Alternative valuations could drive up consumer costs
While alternative valuation solutions could speed up the lending process, they could also make the mortgage a higher-risk product and drive up interest rates for consumers. HousingWire sat down with David Lykken, Transformational Mortgage Solutions founder and chief transformational officer, to discuss how new valuation products are affecting the housing industry. Read the interview here.
Housing markets at risk for a downturn
Another recession is inevitable. Though it won’t be a repeat of 2008, housing markets in certain parts of the U.S. are more at risk than others. According to Redfin’s “Housing Downturn Risk Score” assessment, the metro areas least at risk for a real estate dip during the next recession are Rochester, Buffalo, and Hartford. The metros most at risk for a housing downturn are Riverside, California, Phoenix, and Miami. Get more details here.
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