Serving the Next Generation

By Stevens, David H. | Mortgage Banking, October 2012 | Go to article overview
Save to active project

Serving the Next Generation

Stevens, David H., Mortgage Banking

These are truly extraordinary times for our economy, the real estate finance industry and, most of all, for the next generation of homebuyers. And as the industry that helps finance the places where Americans live, work and play, it is our responsibility to take the lead in shaping the future of real estate finance and restoring a vibrant marketplace that best serves families and communities across our nation.

Timing is critical, as the opportunity lies before us today, but so is the perspective in which we pursue positive change to the real estate finance system.

Collectively, our industry provides the ultimate service to families and communities--we help them achieve safe, affordable housing where their families can grow and prosper. We are involved in almost every real estate transaction whether bought, sold or rented, and we bring a unique understanding of how any change to the real estate finance system will affect homeowners, potential buyers and renters.

The housing industry has entered year five of the crisis and we are still a long way away from sustainable growth. However, we can see some signs of recovery beginning to emerge.


Halfway through 2012, the inventory of existing homes for sale was down to 2.4 million compared with 3.2 million a year ago, and sales of existing homes are picking up pace. The inventory of new homes is at its lowest level in recorded 50-year history, at roughly 142,000.

While shadow inventories are decreasing, we are still at approximately 4 million distressed properties. Foreclosures are still impacting the economy, but we are seeing reductions in many states. Optimism is becoming apparent with record affordability for homes, jobs are slowly coming back and a recovering stock market has emerged.

These are positive signs of recovery, but are extremely fragile and can easily and quickly be reversed because the overall real estate finance market remains at risk. Uncertainty remains one of the biggest threats to sustainable market recovery. Uncertainty in the real estate finance industry and the overall economy will continue to undermine prospects for recovery until addressed. In our industry, credit remains too tight. And if rulemakings are not pursued with the right balance of consumer protection and access to credit, the situation will only get worse.

The Dodd-Frank Wall Street Reform and Consumer Protection Act required regulators to create consumer protections that ensure past mistakes will not happen again. Our industry agrees that we must protect consumers, but not pile on regulations that will dry up credit to those who need it most.

This is about the middle-class and first-time homeowners. We have seen a tidal wave of policies, rules and regulations, on top of unprecedented enforcement and concerns over repurchase demands or lawsuits--all of which are piling on top of each other, causing confusion, increasing costs and restricting credit.

In a six-week period, from July to August 2012, we saw proposed rulemakings on new consumer disclosures under the Real Estate Settlement Procedures Act (RESPA)/Truth in Lending Act (TILA), high-cost loans under the Home Ownership and Equity Protection Act (HOEPA), national servicing standards, loan officer compensation and qualification standards, appraisal disclosures and new appraisal requirements for high-cost mortgages.

Just last month, the Federal Housing Finance Agency (FHFA) also offered guidance on how the government-sponsored enterprises (GSEs) should handle repurchase demands. To complicate things even further, our industry is dealing with the Department of Housing and Urban Development's (HUD's) proposed disparate impact rule, proposed rules on Basel III from three regulators, and rules on risk retention and the Qualified Residential Mortgage from six different regulators.

And this represents just the most recent actions by regulators.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Cite this article

Cited article

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)


1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25,

Cited article

Serving the Next Generation


Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25,

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.