Posts by James M. Nelson
The Feds Keep Lowering Mortgage Rates. But What are the Long-Term Implications?
In June 2020, Freddie Mac reported U.S. home sales increased by the most on record since 1968 when NAR began its tracking, and homebuilding increased the most in four years. Why? The 30-year fixed mortgage rate hit 2.98%, the lowest since 1971. But is lowering the interest rates a sound economic policy? It has been…Read More
The Truth About HUD’s Implementation of the Disparate Impact Rule and the American Dream of Home Ownership
Title VIII of the Civil Rights Act of 1968 prohibits discrimination in the sale, rental, or financing of dwellings and in other housing-related activities based on race, color, religion, sex, disability, familial status, or national origin. Congress gave the authority and responsibility for administering the Fair Housing Act and the power to make rules to…Read More
ALL THAT GLITTERS IS NOT GOLD: Proforma Appraisals
While reading a business article the other day, I came across a passage where the writer reminded the reader of the importance of hearing the signal through the noise. Through all the political noise, I have been studying and analyzing the changes occurring on Wall Street in relationship to the housing markets. Today, the signal…Read More
What is a Hooverville?
Washington Duwamish Tidal Flats Hoovervilles, 1935The photo below shows Hooverville in Seattle, Washington, where unemployment reached 26 percent by January 1935. The site would not be closed until the mid-1950s. America, and the world in general, had become a dark and bleak place to live. People were losing hope. Many families in the Great Depression…Read More
Did you ever wonder how the Secondary Mortgage Markets Works? This Summary is for you.
The relations between the primary and secondary mortgage markets are the basis of the mortgage lending process and are an essential part of our housing industry. Our mortgage markets’ structure and framework have enabled the real estate lending industry to expand to over $7 trillion in outstanding loan balances. The Primary Mortgage MarketThe primary mortgage…Read More
The 2008 Financial Crisis Inquiry Commission Top Five Top Causes of the Crash
The Commission was established to examine the causes of the 2008 Great Recession—an economic crisis that gripped our country—and to explain its causes to the American people. The financial crisis of 2007 and 2008 was not a single event but a series of crises that rippled through the financial system and, ultimately, the economy. Distress…Read More
A New Type Of Landlord: Fighting Goliath In The Time Of Corona
The eviction crisis is coming to America, and we are already five years behind. Tenants across the country are quickly finding as they reach out to extend rent payments that this is not the same type of landlord they were dealing with a decade ago. They are less flexible, more apt to pile on fees, and just…Read More
AI Technology Is Not Colorblind In The Housing System
It is not news to anyone that systemic racism is an issue in the United States. What might surprise people, however, is that Artificial Intelligence (AI) technology is being used to further cement racism into our housing system. In a court case in the US District Court for the Northern District of Texas, Dallas division, one company was…Read More
The CFPB: A Tin Soldier With A New Enemy
What is a tin soldier? Once a popular toy, tin soldiers represented the symbol of bravery. No price was too high for the tin soldier, as they were willing to offer the ultimate sacrifice in defense of their compatriots. America is on the verge of losing one of its greatest tin soldiers, the Consumer Financial Protection…Read More
The Economic Fallout From The Corona Crisis And The Value Of A Dollar
The global Pandemic is wreaking havoc on our medical systems and daily lives. Beyond the medical and societal consequences of the Pandemic, some are left wondering what will happen to the American Economy. Clearly, with markets tanking, millions of Americans laid off, and both large corporations and small businesses losing vital revenue, we can expect to see…Read More