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Washington State Housing Finance Commission

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  1. Washington State Housing Finance Commission HOWDY PARTNER!

  2. Homeownership Housing Summit Wild Western Washington Lender Round Up & Appreciation 8:00 a.m. - 8:30 a.m. Continental Breakfast and Networking Social 8:30 a.m. – 8:40 a.m. Welcome, Introductions & Purpose (Karen Carlson/Paul Edwards) 8:40 a.m. – 9:25 a.m. Todd Britsch – Market Trends – Why now is a good time to buy? Take 5 to go to the watering hole 9:30 a.m. – 9:45 a.m. Mark Vanderlinden - Fannie Mae wants to hear from you. Take 5 to fetch your messages 9:50 a.m. – 10:20 a.m. Dean Dardzinski – MGIC’s role in the State Bond Program Take 5 to round up your posse 10:25 a.m. – 11:00 a.m. Lyn Peters – DFI’s response to the lending market Take 5 to visit the outhouse 11:05 – 11:30 Mina Choo/Dee Taylor – Updates on the tax-exempt bond market Take 5 to strap on your feedin’ bag 11:35 a.m. – noon Raymond Gonzales – Bank of America/Countrywide Updates 12:00 p.m. – 1:00 -p.m. Lunch 1:00 p.m. – 1:30p.m. Kristin Johnsen – What’s new at HUD Take 5 to adjust your spurs 1:35 p.m. – 2:00 p.m. Happy Trails to You Wrap-up (Staff)

  3. Homeownership Housing Summit Wild Western Washington Lender Round Up & Appreciation Welcome

  4. Homeownership Housing Summit Wild Western Washington Lender Round Up & Appreciation Todd Britsch New Home Trends

  5. “Your Source for New Construction Real Estate Information” Now Serving Puget Sound, Portland Metro, Salem, and Boise Regions asdf Puget Sound Housing Outlook Supply and Demand 2009- 2013 Copyright ©2009 New Home Trends Inc This report may not be reproduced, given away, traded, sold, or distributed without the express written consent of New Home Trends Inc.

  6. Plat Applications, New Inventory, and Sales Seattle Metro Market: 2004 - 2008 © 2009 New Home Trends

  7. Plat Applications, New Inventory, and Sales Seattle Metro Market: 2004 - 2008 © 2009 New Home Trends

  8. Plat Processing Time © 2009 New Home Trends

  9. Avail. Spec Homes, Net New Sales, and Average Pricing by Month © 2009 New Home Trends

  10. Historical New Home Sales by Year © 2009 New Home Trends

  11. Historical New Home Sales by Year * Jan. – Feb. 2009 © 2009 New Home Trends

  12. © 2009 New Home Trends

  13. Median Detached New Home Sales Price & Median Household Income King County, WA © 2009 New Home Trends

  14. Median Detached New Home Sales Price & Median Household Income Pierce County, WA © 2009 New Home Trends

  15. Median Detached New Home Sales Price & Median Household Income Snohomish County, WA © 2009 New Home Trends

  16. Projected Puget Sound Demand Numbers Using Estimated Household Growth © 2009 New Home Trends

  17. © 2009 New Home Trends

  18. Homeownership Housing Summit Wild Western Washington Lender Round Up & Appreciation Take 5 to go to the Watering hole

  19. Homeownership Housing Summit Wild Western Washington Lender Round Up & Appreciation Mark Vanderlinden Fannie Mae Senior Business Manager Housing Finance Agencies

  20. Questions? Contact: Mark Vanderlinden Senior Business Manager- HFA Business Mark_j_vanderlinden@fanniemae.com (972) 773-7642

  21. Homeownership Housing Summit Wild Western Washington Lender Round Up & Appreciation Take 5 to Fetch your messages

  22. Homeownership Housing Summit Wild Western Washington Lender Round Up & Appreciation Dean Dardzinski MGIC Pacific Northwest Sales Manager

  23. Changes in the Mortgage Industry Presented by: Dean Dardzinski

  24. Why the Past Environment was Unsustainable Debt-to-Income Example

  25. Parameters • Full Documentation (Ineligible: Reduced Documentation) • Occupancy: Primary Residence • Loan Type: Fixed Rate, Temporary Buydown*, Interest -Only*, GPM* • Property Type: Detached, Attached, Condos (max 95% ltv), Cooperatives (Max 90% ltv) • Ratios: 41% Total DTI* *See complete guidelines at www.mgic.com/uwguide

  26. Affordability+ Rates affordability+ rates are 20% less than standard monthly premiums.

  27. Thank You!

  28. Homeownership Housing Summit Wild Western Washington Lender Round Up & Appreciation Take 5 to Round Up your posse!

  29. Homeownership Housing Summit Wild Western Washington Lender Round Up & Appreciation Lyn Peters Department of Financial Institutions Director of Communications Financial Education & Outreach

  30. Housing in Washington What has DFI been doing?

  31. Nationwide, subprime loan delinquencies fell dramatically after the post-dotcom recession ended but rose dramatically from June 2006 to December 2008, most alarmingly among defaulting Subprime ARM loans "Regulating financial services to protect and educate the public and promote economic vitality."

  32. Lack of coordinated federal agency regulation of mortgage lending OFFICE OF COMPTROLLER OF THE CURRENCY * OFFICE OF FEDERAL HOUSING ENTERPRISE OPPORTUNITY (OFHEO) AND FEDERAL HOUSING FINANCE BOARD (FHFB) TRANSFERRED TO FHFA IN 2008 AS PART OF FANNIE MAE/FREDDIE MAC REFORM. OFFICE OF THRIFT SUPERIVISON FEDERAL HOUSING FINANCE AGENCY* FEDERAL RESERVE BOARD OF GOVERNORS FEDERAL TRADE COMMISSION FEDERAL DEPOSIT INSURANCE CORPORATION DEPARTMENT OF JUSTICE SECURITIES & EXCHANGE COMMISSION NATIONAL CREDIT UNION ADMINISTRATION FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL FARM CREDIT ADMINISTRATION DEPARTMENT OF HOUSING & URBAN DEVELOPMENT "Regulating financial services to protect and educate the public and promote economic vitality."

  33. The Tangled Web of Regulation "Regulating financial services to protect and educate the public and promote economic vitality."

  34. ARM outreach • DFI Adopts CSBS/AARMR Guidance on Nontraditional Mortgage Product Risks (11-06) • http://dfi.wa.gov/cs/nontraditional_mortgage_guidance.htm • DFI adopts statement on subprime mortgage lending (07-07) • Consumer protection is goal of multiple agency agreement • http://www.dfi.wa.gov/consumers/news/2007/subprime_mortgage_lending_news.htm • OpEd • http://www.dfi.wa.gov/consumers/news/2007/jarvis_arm_oped.htm "Regulating financial services to protect and educate the public and promote economic vitality."

  35. ARM outreach • Bi-lingual Statewide Advertising & Outreach "Regulating financial services to protect and educate the public and promote economic vitality."

  36. Homeowner Security Task Force • http://dfi.wa.gov/taskforce/default.htm • 25 members & alternates • 4 Subcommittees • Best Practices for Lenders & Servicers • Best Practices for Originators • Consumer Education & Counseling • Financial Literacy Report • 24 recommendations • Resulting in Legislation "Regulating financial services to protect and educate the public and promote economic vitality."

  37. 2008 Legislation • HB 2770 – Homeownership Security (Governor Bill - Effective Date 6/12/2008) • HB 2791 Distressed Property (Attorney General Bill - Effective Date 6/12/2008) • SB 6272 – Financial Literacy (Governor’s Bill-Effective Date 2/11/2008) • SB 6381 – Mortgage Brokers (Effective Date 6/12/2008) • SB 6471 – Loan Regulations (Effective Date 6/12/2008) • SSB 6711 – Smart Homeownership Choices (Effective Date 6/12/2008) • SSB 6847 – Real Estate Settlement (Effective Date 6/12/2008) "Regulating financial services to protect and educate the public and promote economic vitality."

  38. There has been aRESURGENCE OF DIRECT BANK ORIGINATIONS. Wall Street’s influence over loan products has been curtailed byRE-REGULATION OF LOAN PRODUCTS. Once greater than 14% of all originations,“SUBPRIME” LOANS ARE NOW HARDER TO COME BY. With plummeting house values and “maxed-out” borrowers,HOME EQUITY LENDING FELL SHARPLY. Under increasing regulatory scrutiny and criticism due to aggressive over-selling, theOPTION-ARM LOAN NEARLY DISAPPEARED from the market. At the urging of Congress, once moreFHA AND VA LOANS became the predominant vehicle for low- or zero-down lending. Also under heavy scrutiny and criticism, “STATED-INCOME” AND “NO DOC” LENDING HAS BEEN RESTRICTED. To regulate the abuses in the delivery system,the pendulum has swung back "Regulating financial services to protect and educate the public and promote economic vitality."

  39. Investigation & Enforcement • Investigative reporter Eric Nalder highlighted DFI’s enforcement activities http://www.seattlepi.com/local/402493_mortgagesquibs06.html • Since 2007 DFI: • Denied 164 licenses • Opened 677 new cases • Closed 343 cases • 132 cases are in litigation, 278 are active • Since 2007 DFI issued: • 107 – Consent Orders • 195 – Final Orders • 372 – Statement of Charges • 10 – Temporary Cease & Desist Orders • DFI does this with only 9 examiners, 2 supervisors and an Enforcement Chief "Regulating financial services to protect and educate the public and promote economic vitality."

  40. SB 6272: Homeownership Program • WSHFC coordinated and ran • www.homeownership.wa.gov • 1.877.894.HOME • Free counseling for pre-purchase and post purchase • 2868 have taken advantage of counseling • 1636 Post-Purchase • 1232 Pre-Purchase • Only 14 foreclosures "Regulating financial services to protect and educate the public and promote economic vitality."

  41. Statewide advertising & outreach • Bi-lingual • State-wide • Print, radio, TV, theatre, online, bus, billboard, Val-Pak, direct mail packets • Foreclosure prevention forums • Fairs & Festivals "Regulating financial services to protect and educate the public and promote economic vitality."

  42. 2009 Legislation • EHB 1311 - Regulating Reverse Mortgage Lending Practices • SHB 1621 -Regulating Consumer Loan Companies For Compliance With The Secure And Fair Enforcement For Mortgage Licensing Act Of 2008 (“SAFE Act”) • SHB 1749 Regulating Mortgage Brokers For Compliance With the SAFE Act • SB 5221 - Distressed Property Conveyances • ESB 6033 - Creating the prevent or reduce owner-occupied foreclosure program "Regulating financial services to protect and educate the public and promote economic vitality."

  43. For all residential loan types as of 4th QTR 2008, Washington State ranks 46th among all other states and the District of Columbia in percentage of total past due loans. "Regulating financial services to protect and educate the public and promote economic vitality."

  44. What’s next? • We’re working with industry, media, and Web 2.0 social media to share a new message: “Now may be the right time to assess your homeownership status.” • http://dfi.wa.gov/consumers/education/home/homeownership-status.htm • Buy, refinance, prevent foreclosure • Updated Guide

  45. Questions? • Lyn Peters  Director of Communications Financial Education & Outreach P: 360-902-8731C: 360-349-8501 lpeters@dfi.wa.gov • www.dfi.wa.gov • En Español at 1.888.976.4422 • www.dfi.wa.gov/financial-education • www.twitter.com/FinEd4All • www.twitter.com/DFIConsumers • www.finlit.blogspot.com • www.youtube.com/user/WADFI • www.homeownership.wa.gov "Regulating financial services to protect and educate the public and promote economic vitality."

  46. Homeownership Housing Summit Wild Western Washington Lender Round Up & Appreciation Take 5 to Visit the Outhouse

  47. Homeownership Housing Summit Wild Western Washington Lender Round Up & Appreciation Mina Choo RBC Capital Market Municipal Finance Group Director Dee Taylor WSHFC Homeownership Division Director

  48. Washington State Housing Finance Commission Lender Roundup May 1, 2009

  49. Use of Bond Proceeds WSHFC Issues Bonds Lenders Lenders Housing Agency Lenders Lenders Bonds Bondholders Insurance/ Casualty Companies Bond Funds Banks Individuals (Retail) Others

  50. Use of Bond Proceeds Lenders Make Loans with Bond Proceeds Mortgages Lenders Homeowners Mortgages Lenders Housing Agency Homeowners Mortgages Lenders Homeowners Proceeds Mortgages Lenders Homeowners Bondholders