Whether you are a renter or a homeowner here is a quick rundown of the most notable moves in the housing industry since Biden took office:
- Biden extends the federal eviction moratorium, which is set to expire on Jan. 31, through at least March 31. The executive order also calls on federal housing agencies to extend the foreclosure and eviction moratorium for federally backed mortgages at least through March, and allow forbearance applications to continue for federally-backed mortgages.
- Biden appoints new HUD chief of staff NCRC executive Jenn Jones
- HUD declares FHA once again backing DACA mortgages
- Consumer Financial Protection Bureau Director Kathy Kraninger resigns at Biden’s request
Six things that are being proposed that we should be looking out for:
- Biden is proposing a $15,000 first-time homebuyer tax credit, which could be accessed immediately by the buyer, thereby serving as down payment assistance.
- The FHA could also reduce its monthly insurance premiums under the new leadership.
- The FHA could expand lending to Big Banks, many which exited after the Great Recession. This would have an impact on strengthening the Community Reinvestment Act as well.
- There may be a push for more high-density multifamily construction (this will depend on how they navigate environmental regulations).
- The American Rescue Plan, If it comes into effect as proposed, allocates $25 billion in rental and utility assistance which can go towards up to 12 months of eligible renters’ expenses. Another $5 billion will go toward paying overdue utility bills, through programs like the Low Income Home Energy Assistance Program. $5 billion would go toward emergency assistance for people facing homelessness.
- As the economy recovers and the need for the Federal Reserve to buying up the mortgage-backed security supply, is going to be lessened, putting upward pressure on rates. It is important to note, Biden has no control over this and increasing rates are a sign of an improving economy.
Sources: Forbes , NBC, Housing Wire, Bloomberg