Monthly Archives: October 2016

HUD transition team of Loans VP

The Trump transition team ordered all lobbyists removed from its ranks two weeks ago to follow through on campaign pledges made by Mr. Trump to “drain the swamp” in Washington.

However, Quickens claims that Krause’s new role in the transition team didn’t pose any conflict of interests with the lender. In fact, the company’s CEO said Krause is a perfect fit for Trump’s team if he is looking to drain the swamp, according to the article.

From the article:

“It makes total sense you’d have someone like that. You’re finding people that actually understand housing,” said Bill Emerson, Quicken’s chief executive. “When you think about draining the swamp, this goes right in line with that.”

While Trump is getting his HUD transition team in place, the department’s secretary has yet to be officially named. Sources told HousingWire retired brain surgeon and former GOP candidate Ben Carson will accept the role, however he has yet to do so.

Sources confirmed he would make the announcement at the beginning of this week, but so far it has been silent. Perhaps he was waiting for the HUD transition team to be in place before announcing his acceptance?

Whatever the reason for Carson’s delay, companies are already urging the next HUD secretary, without regard to who it is, to bring change to affordable housing.

“During his acceptance speech, President-Elect Trump said that a top priority for his administration will be to invest in America’s infrastructure and inner cities as part of a ‘project of national growth and renewal,’” Terri Ludwig, Enterprise Community Partners president and CEO told HousingWire. “Investments in quality, affordable housing must be a part of that agenda.”

“Today more than one in four families who rent their homes – 11.4 million households in total – are ‘housing insecure,’ spending at least half of their monthly income on housing,” Ludwig said. “This unprecedented affordable housing crisis not only damages the health and economic prospects of millions of people in America, it’s also a drag on our country’s economic growth.”

“We urge the nominee, the new administration and Congress to take bold steps to address this worsening crisis,” she said.

Home leader Ben Carson lists Florida

Ben Carson just announced that he accepted the role of HUD Secretary and is already making moves in his own personal housing situation.

According to an article in Variety, he listed his home in West Palm Beach, Florida for $1.2 million. If he sells his home at that amount, he would turn a nice profit, given Carson originally purchased the home three years ago for $775,000.

The home, which is located in an upscale guard-gated golf community, has 5 bedrooms and 4.5 bathrooms.

From the article:

Doctor Carson and his wife, Candy, have already purchased their next home, a nearly 9,000-square-foot similarly ersatz mock-Med mansion in Palm Beach Gardens that they picked up for $4.375 million, and they continue to own a 47.75-acre spread in rural Upperco, Maryland, about 25 miles northwest of The Johns Hopkins Hospital in Baltimore where until his 2013 retirement Dr. Carson was the esteemed head of pediatric surgery, that was acquired, per property records, in September 2001 for $1.5 million.

CoreLogic forecasts that home prices will increase by 4.6% year-over-year, and by 0.2% by next month.

The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

“Home prices are continuing to soar across much of the U.S. led by major metro areas such as Boston, Los Angeles, Miami and Denver,” CoreLogic President and CEO Anand Nallathambi said.

“Prices are being fueled by a potent cocktail of high demand, low inventories and historically low interest rates,” Nallathambi said. “Looking forward to next year, nationwide home prices are expected to climb another 5% in many parts of the country to levels approaching the pre-recession peak.”

In fact, it seems the market already hit pre-recession levels and the Federal Housing Administration even increased conforming loan limits for 2017 due to these high home prices.

Upward climb in October of Home Price

Home prices continued their upward trend in October, and are forecasted to continue rising into next month and next year, according to the Home Price Index and HPI Forecast by CoreLogic, a property information, analytics and data-enabled solutions provider.

Home prices, including distressed sales, increased annually by 6.7% in October 2016, and increased 1.1% from September, according to the index.

CoreLogic forecasts that home prices will increase by 4.6% year-over-year, and by 0.2% by next month.

The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

“Home prices are continuing to soar across much of the U.S. led by major metro areas such as Boston, Los Angeles, Miami and Denver,” CoreLogic President and CEO Anand Nallathambi said.

“Prices are being fueled by a potent cocktail of high demand, low inventories and historically low interest rates,” Nallathambi said. “Looking forward to next year, nationwide home prices are expected to climb another 5% in many parts of the country to levels approaching the pre-recession peak.”

In fact, it seems the market already hit pre-recession levels and the Federal Housing Administration even increased conforming loan limits for 2017 due to these high home prices.

It was less than a month ago that a spokesman for retired neurosurgeon Ben Carson told reporters that the erstwhile GOP presidential candidate would not be serving the Trump administration in anything but an unofficial advisory capacity. “Dr. Carson feels he has no government experience,” Armstrong Williams said, “he’s never run a federal agency. The last thing he would want to do was take a position that could cripple the presidency.” On that basis alone, President-elect Donald Trump’s announcement Monday that Mr. Carson would be his choice to head the Department of Housing and Urban Development was baffling. Add the fact that Mr. Carson has no relevant expertise whatsoever (secretary of health and human services, the previous job for which the highly accomplished physician was mentioned, might have been a different story) and Mr. Trump’s pick goes well beyond baffling.