News & Press: The Road Home Newsletter

A Month for Remembrances and Anniversaries

Monday, September 24, 2018  
Share |

    September 24, 2018

     A Month for Remembrances and Anniversaries

    September marks ten years since Fannie Mae and Freddie Mac were put into conservatorship at the height of the financial crisis of 2008.  Looking back, this tenure is much longer than many would have expected at the time.  And many have been disappointed that even under conservatorship, these agencies have invested in new multi-million dollar headquarters, formed a joint subsidiary to develop the common securities platform at a cost of at least a half a billion dollars, provided financing to institutional investors that have bought up single family residential homes to place them into the rental market (where rents are rising at historical levels), resisted the adoption of alternative credit scoring models that would expand the market for potential home buyers and kept pricing at historically high levels that some experts say are not aligned with the risk profile of today’s home buyers or the mortgages that they are acquiring.

    Last week, new legislation was introduced in the US House of Representatives to provide a blueprint for the exit of these agencies from conservatorship and to provide supports to the secondary market for mortgages to ensure liquidity and capital sources, especially when the market is stressed by extraneous factors.  Your AHA will be monitoring the progress of this legislation to ensure the voice of homeowners is heard when necessary.

    This month also marks the 17th anniversary of the attacks on the New York twin towers of the World Trade Center and the Pentagon as well as the demise of those on the aborted Flight 93 that did not reach the terrorists’ target.  For many of us, this was a seminal moment never to be forgotten while for more and more young people, it is another piece of “ancient” history.  Either way, it has become part of our collective consciousness shaping our thoughts for today and tomorrow.  We continue to honor the first responders who showed such valor on that day and mourn those lost and sympathize with all those who lost loved ones on that day -- and continue to lose loved ones even today from the adverse health effects of that day.

    As hurricane season returns, the National Flood Insurance Program (NFIP) also returns to mind.  As we have previously discussed, the program was extended for four months through November 30, 2018.  While this move by Congress helps to avoid disruptions to real estate transactions and provides continuity of coverage for those insured, the NFIP needs major overhauls.  Needed principles are for the NFIP to be financially sustainable -- to protect both insureds and taxpayers – and for premium rates to be at affordable levels for existing homeowners.   Today, the NFIP fund has a deficit of over $30 billion. And one way to achieve both of these goals is to expand the pool of those insured to cover all catastrophic events that affect homeowners and to disperse such risks to make premiums lower for all.  In addition to hurricanes and other flooding, the government also provides assistance to homeowners when landslides, wild fires, ground subsidence and other catastrophes occur.  These uninsured events are ultimately paid for by the taxpayers.  Expanding the insurance, and the pool of insureds, could make the NFIP more rational and sustainable for all stakeholders.

    Natural Disasters Can Strike Quickly – Be Prepared!

    Sometimes we have weather warnings that precede a natural disaster – but other times, disaster can strike quickly and there is limited time for preparation or communications.  Prepare before disaster strikes to protect the health and well-being of your family.

    Chilly Evenings and Time for Fall Parties

    Discounts and cash back offers change every day.  So whether you need basics like diapers -- or want to splurge on warm sweaters or treats for a fall festivity, don’t shop until you check AHA Member Rewards here.

    Contact us

    (c) 2018 America's Homeowner Alliance.  All rights reserved.

    If you wish to stop receiving email from us, you can simply remove yourself by visiting: @@unsubscribe_url@@

    America's Homeowner Alliance