Executive Perspectives Blog
Significant debate around multifamily housing policy focuses on the question of whether the federal government should support affordable multifamily rental housing and, if so, how the government should encourage private capital to flow toward it. While important, that question tends to overshadow the equally important, but more nuanced, question of what the need is for affordable housing, how to help meet it most effectively, and what trade-offs come with choosing one policy approach over another. The definition of what an affordable housing unit is, and what makes any given unit affordable – the rent level, tenant, or income level in the surrounding area – is central to the answer.
This week, Freddie Mac reported its fourth quarter and full-year 2013 financial results. Net income totaled $48.7 billion and comprehensive income was at $51.6 billion – both records for the company. The quarter was also a record for pre-tax income at $8.6 billion and marked our ninth consecutive quarter of positive earnings. However, it's important to note that our results included several legacy items that were strongly favorable in 2013, such as legal settlements, but it is our expectation that such items will be considerably smaller in 2014.
Without lender and investor trust in the quality of mortgage data and underwriting, credit for buying homes or refinancing existing loans would probably dry up. Today the mortgage industry faces the challenge of increasing the speed, transparency, and consistency of efforts aimed at improving mortgage quality and striving to keep it at that higher level across the entire housing cycle.
Most people will move about 12 times in their lifetime. That might sound like a lot, but throughout their lives, individuals fluctuate between renting a house or apartment, and owning a home. And Freddie Mac is there, providing funding and educational resources throughout their housing lifecycle.
In this installment of “Dispelling the Myths,” we’re focusing on short sales – when a property is sold for less than the balance remaining on the mortgage loan. The short sale is an important tool for helping distressed homeowners avoid foreclosure and eliminate their mortgage debt. And thanks to key changes we’ve made in the program, Freddie Mac short sales today are taking less time to process on average than ever before. But for a lot of borrowers, short sales remain a mystery. Here are eight common misconceptions about short sales – and the facts every distressed homeowner should know.