1. WMY Financial & Housing Policy Update
November 2017
(Kyle Williams)

2. Summary Housing Update Budget Update Accomplishments
HUD/ Tax Reform/ and Other Pending Issues
Questions

3. Housing Update HMDA Data
African American received only 6% and Latinos only 8.8% of the total loans (purchase and refinance) approved last year
Over 70% of the loans African Americans received and over 60% of the loans Latinos received were government backed (FHA & VA)
The overwhelming majority of the loans African Americans and Latinos received were for refinances, not purchases
African Americans had a nearly 50% declination rate
#s increased since last year, based on high refis, which are unlikely to occur with the increase interest rates, even though home prices are increasing

4. Housing Update Current Barriers to Homeownership Stagnant wages
Rising home prices
Lack of affordable housing stock/ starter homes
Rising interest rates
High credit score requirements
Down payment requirements
DTI requirements
Self selection out of the market
New regulations
Compliance costs
The conservatorship agreement

5. Budget Update Trump’s proposed FY 2017 budget FY 2017 enacted budget
Housing Counseling: 10% cut
CDBG: $0
HOME: $0
NeighborWorks: $0
FY 2017 enacted budget
Housing Counseling: $55 million
CDBG: $2.9 billion
HOME: $850 million
NeighborWorks: $140 million
The current 2017 Continuing Resolution expires in December, along with the authorization for the debt ceiling

6. Accomplishments 2 Housing Panels Meetings with:
Fannie Mae’s leadership
Freddie Mac’s leadership
FHFA Director Mel Watt
HUD Secretary Ben Carson
House Financial Services Committee Chairman, Jeb Hensarling
Senators Warren and Brown
Craig Phillips, Counsel for Secretary Mnuchin
Federal Reserve Board Governor, Lael Brainard
Various stakeholder meetings, briefings and conference calls
LEP included in redesigned URLA
Affordable Housing Goals comments
Duty to Serve comments and remarks to Fannie
Section 1071 Comments
Pipeline initiatives
Slush Fund

7. HUD FHA Section 3 Fair Market Rent
Affirmatively Furthering Fair Housing

8. Tax Reform Cuts taxes for large corporations and the wealthy
Increases taxes on the middle class
Increases the debt with the goal to cut social programs
Not to mention the $800 billion in cuts included in the FY 2018 Budget Resolution
Retains the MID and LIHTC

9. Pending Issues Conservatorship Agreement Housing Finance Reform
Slush Fund
Crowdfunding for down payments
Payday Rule
Arbitration Rule
Housing Counseling fee for services

10. Questions What is the number one constraint to homeownership?
What is the most important HUD funding source?
What role can the Urban League play as it relates to Section 3?
What’s the average timeframe for a successful housing counseling client to purchase a home?
Is there still a need for NFMC funding?
How do you feel about playing the role as information gatherers for lenders?
What’s the appropriate fee for services model?

11. Contact Information
Kyle R. Williams, Esq.
Director, Financial and Housing Policy
National Urban League Washington Bureau
(202)