Cash-flow underwriting offers a promising alternative to traditional underwriting methods, which often leave qualified families and individuals behind. Drawing on insights from NAHREP mortgage professionals, this policy brief explores how the approach can responsibly expand access to homeownership, particularly for Latino communities.
The letter outlines NAHREP’s position on how federal deregulation efforts can help address the nation’s housing supply crisis while protecting critical safeguards in mortgage lending.
NAHREP has joined a coalition of organizations to support the Housing Supply and Innovation Frameworks Act. The bill, introduced by Rep. Mike Flood (R-NE) and Rep. Lisa Blount Rochester (D-DE), is a bipartisan piece of legislation designed to address barriers to housing development and construction. If passed, the bill would require the Department of Housing and Urban Development (HUD) to develop a framework for state and local housing reform, including best practices for zoning and land-use reform.
NAHREP joined a coalition to urge the Senate to make the current mortgage insurance premium tax deductions permanent and increase its income phaseout. For years, mortgage insurance premiums have been tax deductible and subject to an income phaseout for taxpayers with adjusted gross incomes (AGI) over $100,000 (or $50,000 if single or married, filing separately). Millions of low- and moderate-income homeowners have benefited from the tax code. However, the provision’s temporary nature and low income phaseout could create a burden in allowing additional families to claim the deduction. The AGI cap has not changed since 2007, when the deduction first took effect.
NAHREP joined the National Housing Resource Center and other housing advocates signed a letter asking HUD to lower the FHA Mortgage Insurance Premium by 25 to 35 basis points and end the life of loan requirement on the FHA Mortgage Insurance Premiums. These changes would make FHA-insured mortgages more affordable for homebuyers at the point of sale and reduce monthly payments in the long term. As the U.S. is currently facing rising interest rates and record low housing affordability, now is a critical time to act on these initiatives.
NAHREP submitted a comment letter to the Department of Homeland Security (DHS) on November 29, 2021, encouraging a reevaluation of the proposed changes to the Deferred Action for Childhood Arrivals (DACA) program. While we are heartened to see DHS make efforts to preserve and strengthen DACA, we offer recommendations that will bolster the program even further. We encourage DHS to secure work authorization for DACA recipients, recognize them for their economic contributions during the COVID-19 pandemic, and update DACA eligibility standards.
NAHREP joined a coalition of institutions that span the entire housing finance ecosystem to ask Congress to refrain from using Fannie Mae and Freddie Mac (“the GSEs”) guarantee fees (“g-fees”) as a source of funding offsets in Infrastructure package. G-fees should only be used as originally intended: as a critical risk management tool to protect against potential mortgage credit losses and to support the GSEs’ charter duties.
NAHREP joins a broad spectrum of the housing industry and community advocacy groups to strongly support the nomination of Julia Gordon as Assistant Secretary for Housing and Federal Housing Administration (FHA) Commissioner at the U.S. Department of Housing and Urban Development (HUD). FHA plays an integral role in ensuring low- and moderate-income individuals and underserved communities have access to safe and affordable mortgage financing. Gordon has had an exemplary career in both the housing and housing finance fields and her leadership positions provide her a robust background in matters affecting the housing and mortgage industries.
In response to the Federal Reserve’s proposed changes to the Community Reinvestment Act, NAHREP urges the Federal Reserve to strengthen the rigor of CRA exams in order to expedite a full economic recovery, particularly for those most affected by the COVID-19 pandemic. NAHREP encourages the Federal Reserve to prevent grade inflation by preserving the five subtest threshold at the state-level, require race and ethnicity data on CRA exams, and continue support for enhanced data collection, including community development financing data. NAHREP commends the rule’s focus on transparent data analysis and quantitative measures of impact on communities.
NAHREP Urges CA Governor to appoint first CA Latino to U.S. Senate NAHREP, along with the Latino Donor Collaborate and the UCLA Latino Policy and Politics Initiative, co-lead a broad coalition urging California Governor Gavin Newsom to make a historic appointment by selecting a Latino to fill the vacancy left by United States Vice President-elect…