A new banking bill won’t just impact the big banks like Chase and Wells Fargo — if it becomes law, it will impact most Americans too.
The Senate approved a bill last week that will roll back some aspects of the Dodd-Frank banking reform bill, which was passed in 2010 after the financial crisis. It will make many small and midsize banks exempt from parts of Dodd-Frank. The bill was sponsored by Mike Crapo, a Republican senator from Idaho. It will now move to the House, where it could be amended further.
While they worry about affording the down payment, a survey of homeowners and buyers finds Millennial first-timers more eager to buy a house. The homeowners they might buy from, however, aren't so sure they can themselves.
American Financial Network, Inc. (AFN) today introduced AFN Protection+, an innovative mortgage product that protects a homebuyer’s down payment and is available immediately on all applicable AFN mortgages. AFN Protection+ will include +Plus SM down payment protection by ValueInsured SM embedded directly into homebuyers’ mortgages.
More than one-third of Millennials looking to purchase their first home say they plan to rely on a loan or a gift from a relative to cover a key portion of their down payment, according to a recent survey.
Most homeowners believe that low mortgage rates are a thing of the past. The ValueInsured survey indicated that 72 percent of existing homeowners believed the era of historically low rates and affordable mortgages was coming to an end. This sentiment was particularly acute among homeowners of expensive homes, with 95 percent of those who reported owning a home valued at $1 million or more expecting the end of low mortgage rates in their lifetime.
It’s a seller’s market across much of the U.S. thanks to brisk growth in home prices and low for-sale inventory in many areas. While that’s great news for homeowners who want to enjoy the financial benefits of increasing equity—such as refinancing to lower mortgage payments or even take out cash—it’s bad news for buyers, many of whom are afraid to make the largest investment of their lives at what could be the apex of another real estate bubble.
In fact, though the Fall 2017 Modern Homebuyer Survey from ValueInsured revealed that 79 percent of homeowners believe now is a good time to sell, only 57 percent of the 66 percent who are interested in selling think they’ll actually be able to do so within the next three years.
“This dichotomy is caused by greed and fear,” Joe Melendez, founder and CEO of ValueInsured, explained to Reward Expert. “On the greed side of the equation, people realize that prices have recovered, and in some markets, are at all-time highs. However, they also realize that if they want to buy a new house, it’s going to cost them more than the one they just sold. So, they decide to just stay put. That’s the fear element.”
It's a seller's market thanks to low inventory, but ValueInsured, Dallas, said many would-be sellers are hesitating to sell because of the high price they'd have to pay for their next home.
The company's quarterly Modern Homebuyer Survey reported 79 percent of homeowners believe now is a good time to sell a home. Two-thirds of homeowners are interested in actually selling their home "in the near future," up 8 percentage points from last quarter.
But many aren't selling, said ValueInsured CEO Joe Melendez. "Homeowners in many cases are eager to sell but don't want to become buyers," he said. "These homeowners have experienced a lot of home value volatility and see more uncertainties looming--tax reform, for example. By hesitating, these homeowners are actually controlling the market on both sides. Reassuring these individuals is the key to unlocking inventory."
Home buyers say tight inventory and rising home prices are causing several negative trends in the housing market. According to ValueInsured’s latest Modern Homebuyer Survey, a quarterly report based on more than 1,000 responses, buyers say the following trends will leave the housing market in a weaker position:
The “no inspection” trend: 58 percent
The “offer sight unseen” trend: 57 percent
The “co-buying with strangers” trend: 54 percent
The “cashing out from retirement savings” trend: 37 percent
With a seller’s market in many places across the country, why are so many homeowners reluctant to sell? Nearly 80 percent of more than 1,000 homeowners recently surveyed say they believe now is a good time to sell a home, but many don’t plan to list their homes anytime soon.
Numerous would-be sellers say they’re holding off because of the high price they’d have to pay for their next home, according to ValueInsured’s latest quarterly Modern Homebuyer Survey.
It is seen as a seller's market in many parts of the country because of low inventory but those high prices are a double-edged sword when it comes to selling and then buying a home. People believe they can get an exceptional value for selling their home but then they're afraid to buy into a new property at these new market prices. Joe Melendez is CEO at ValueInsured.
Many have speculated that low refinance rates have been preventing homeowners from selling, but this factor is less consequential than expected, according to ValueInsured. Only about 18% of consumers interested in selling their home claim they haven't because of their current low mortgage payment.
With record-high home prices fueled by tight inventory and high demand, it's a seller's market, but many would-be sellers are hesitant to sell because of the price they'd have to end up paying for a new home.
About 79% of homeowners reported that it was a good time to sell a home in the third quarter, and two-thirds of homeowners stated they will sell "in the near future," up eight percentage points from the previous quarter.
Three in Five Would-Be Sellers Waiting for Prices to Settle, According to the Latest ValueInsured Modern Homebuyer Survey
It’s a seller’s market thanks to low inventory, but according to ValueInsured’s latest quarterly Modern Homebuyer Survey, many would-be sellers are hesitating to sell because of the high price they’d have to pay for their next home.
The survey, released today, found that 79 percent of homeowners believe now is a good time to sell a home. Two-thirds of homeowners are interested in actually selling their home “in the near future,” up 8 percentage points from last quarter.
Introducing +Plus Equity Protection, Latest Product from ValueInsured to Protect Homeowners
DENVER, Oct. 24, 2017 /PRNewswire/ -- ValueInsured, the only provider of home down payment protection, today announced the availability of +Plus Equity Protection on home refinances at the Mortgage Bankers Annual Convention and Expo in Denver. The new +Plus Equity Protection program allows current homeowners to refinance their current loans and protect their equity for the future - the same way +Plus Down Payment Protection does for homebuyers.
The Only Provider of Down Payment Protection Enables Homebuyers to Close with Confidence
DALLAS, Oct. 11, 2017 /PRNewswire/ -- ValueInsured, the only provider of down payment protection, today announced the closing of $6.5M of funding led by an affiliate of Everest Re Group Ltd. and also Houston International Insurance Group (HIIG). The latest round of funding from Everest Re and HIIG builds on their existing partnerships with ValueInsured, which began in 2014 with an initial $6M seed round. This additional investment provides ValueInsured with the growth capital to continue its aggressive distribution partnership strategy, expanding channel presence and enhancing the features of the +Plus SM down payment protection program.
New Home Mortgage Program Provides Greater Security to Georgia Homebuyers if They Have to Sell at a Loss, Empowering Them to Buy With Confidence
ATLANTA, October 4, 2017 – BankSouth Mortgage today introduced BankSouth Mortgage +Plus, an innovative product that gives Georgia homebuyers greater control by protecting their down payment against potential future drops in market prices. Included as a feature of BankSouth Mortgage +Plus loans, +Plus SM down payment protection enables homebuyers to buy with confidence knowing that they can recover up to their full original down payment should they need to sell their home in a down market.
LendingQB, a provider of lean lending loan origination technology solutions, today announced a new partnership with ValueInsured which embeds +Plus down payment protection directly into its loan origination platform. By making +Plus down payment protection a turnkey solution in the existing LendingQB system, lenders are able to easily add down payment protection to their mortgage programs and provide borrowers with a greater choice when selecting a mortgage. +Plus down payment protection enables homebuyers to buy with confidence knowing that recovery up to the full original down payment should the need to sell their home in a down market arises.
It could be another eight years before all homes recover their value: Trulia
Most American homes are worth less now than they were before the recession, according to a report out Wednesday.
Fresh data from real-estate website Trulia show that just 34.2% of homes have returned to the peak levels registered before the onset of the recession in 2008. What’s more, Trulia estimates it could take until 2025 for a true national recovery in home prices.
Americans have simmering concerns about overheated house prices and increasingly suspect that a housing price correction may be imminent, reported ValueInsured, Dallas.
"We see more homebuyers concerned with timing the market," said ValueInsured CEO Joe Melendez. "This is especially true for Millennials, who are more likely to switch jobs, relocate or need to upsize in the next few years. No one wants to buy at the peak and find themselves underwater as so many did a decade ago."
This supply and demand imbalance has sent home prices soaring. Prices are up so much in some markets that a new homebuyer survey by ValueInsured uncovered significant concerns among many buyers that the housing market is in for a price correction.
A nationwide increase in median home values coupled with low inventory indicates a stronger post-recession market. However, more Americans are becoming wary of this upward trajectory, according to ValueInsured’s recent Modern Homebuyer survey. In fact, a majority of participants believe the country is headed for another market correction.
Americans increasingly believe the housing market is overheating and home prices continue to rise, and said they suspect a housing price correction may be imminent, according to the latest Modern Homebuyer Survey from ValueInsured, aprovider of down payment protection for homebuyers.
More than half of American homeowners—58 percent—say they expect there will be a “housing bubble and a price correction” within the next two years, according to the latest survey of more than 1,000 Americans from ValueInsured’s Modern Homebuyer Survey.
NAR's latest Housing Pulse survey echoes some of ValueInsured's findings, with six of 10 respondents saying they are concerned about the cost to buy a home or high rent prices in their area. Eighty-four percent of the Housing Pulse respondents say they believe buying a home is a good financial decision, and affordability was ranked as the fourth top issue, after affordable health care, low wages and debt, and heroin and opioid drug abuse.
Home prices are rising and inventory is low—sound familiar? That fact has been talked about nearly to death, but it’s for good reason. Though it means that housing confidence is up and on a positive trajectory, it also means for certain areas that we could be headed for a correction.