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- Election is over, now what?
Election is over, now what?
Looks like a Biden presidency is all but inevitable. So what can we expect in the real estate and mortgage space over the next few years? Let's find out.
Biden promised to invest $640 Bn over 10 years "so every American has access to housing that is affordable, stable, safe and healthy, accessible, energy efficient and resilient, and located near good schools and with a reasonable commute to their jobs". That is lot of money. Expect the upward trend in new housing starts to continue.
Biden proposed a $15,000 tax credit to help first-time homebuyers purchase a property. If you have been paying attention, the boom in mortgages that we saw in the last few quarters is mainly from Refinances and from Premium & Luxury properties. Expect the growth to spread to affordable housing with this tax credit.
A Biden Presidency would mean higher regulation in the Financial services industry, including mortgages. You know that, Consumer Financial Protection Bureau (CFPB) was created during the first Obama administration. CFPB Law enforcement has been dropping under Trump. Expect this to reverse course under Biden.
There has been talk about Fannie Mae and Freddie Mac coming out of conservatorship in the next couple of years. Expect those plans to be delayed or shelved, and it is not necessarily a bad thing. Given the current conditions in the overall economy, we probably need Fannie Mae and Freddie Mac to continue to be guided by government and provide that additional stability.
Something interesting happened a little before the election closed. Caliber and Amerihome announced that they will be delaying their IPOs. Now this has nothing to do with the election. This is what happens when companies time their IPOs to short term market trends rather than to the long term value they created. We will talk more about it another time.
Election is over. Now let's get back to work :)
The Biden Plan calls for a $640 Bn investment in affordable housing over the next 10 years.
Former Vice President Joe Biden has proposed a $15,000 tax credit to help first-time homebuyers purchase a property. Unlike tax credits in the Bush and Obama administrations, buyers would get this when they most need it: At the closing table.
If former Vice President Joe Biden wins the White House, what will happen to the Trump administration’s plans to free Fannie Mae and Freddie Mac from conservatorship? For now, more conservatorship...
(Bloomberg) -- A pair of home loan originators are backing away from initial public offerings for now as market volatility climbs.
Caliber Home Loans Inc. said in a statement that it was delaying its IPO that was set for Wednesday, confirming an earlier report by Bloomberg. AmeriHome Inc.