HUD - St Louis Real Estate News

HUD Charges Appraiser, Appraisal Management Company, and Lender with Race Discrimination

By Dennis Norman, on July 15th, 2024

In a significant move to address racial discrimination in housing, the U.S. Department of Housing and Urban Development (HUD) has charged an appraiser, an appraisal management company, and a lender with discriminatory practices. This case involves allegations against Maksym Mykhailyna, Maverick Appraisal Group, Solidifi U.S. Inc., and Rocket Mortgage, LLC, for issuing a biased appraisal that undervalued a Black homeowner’s property in Denver, Colorado. According to HUD, “The Fair Housing Act protects all of us from discrimination throughout the process of buying a home or securing a home loan,” emphasizing the severity of the charges and HUD’s commitment to enforcing Continue Reading →

Refinance Activity Surges Despite Rising Mortgage Rates – Purchase Applications Fall

By Dennis Norman, on April 11th, 2024

Last week, the interest rates for 30-year fixed-rate mortgages climbed past the 7 percent mark. Despite this increase, as the chart below illustrates, there was a significant 10 percent increase in refinancing applications. This is in sharp contrast to a 5 percent decline in purchase applications. The growth in the refinancing segment is notable, representing 33.3 percent of the total application volume, up from 30.3 percent the previous week. This surge in refinancing interest is particularly intriguing, given the highest reported 30-year mortgage rates in over a month, at 7.01 percent.

Joel Kan, MBA’s Vice President and Deputy Chief Economist, Continue Reading →

NAR and MBA Seek Assurance from Fannie Mae and HUD on Commission Practices to Protect Homebuyers

By Dennis Norman, on March 29th, 2024

One of the issues receiving significant attention following the announcement of the REALTOR® commission suit settlement is the topic of buyer commissions, specifically regarding whether a buyer has to pay them and how lenders will treat the commissions.

In a recent letter to the Federal Housing Finance Agency (FHFA), Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac, NAR and MBA sought confirmation on the treatment of buyer agent commissions following a proposed settlement agreement in the Burnett et al and Moehrl et al cases.

What does this mean for homebuyers? Under the Continue Reading →

NAR President Traci Casper Addresses Housing Market Challenges and Commission Lawsuits in CNBC Interview

By Dennis Norman, on December 19th, 2023

Traci Casper, NAR President

In a recent interview with CNBC, Traci Casper, the President of the National Association of Realtors (NAR), shared her views on the current state of the housing market and the implications of recent commission lawsuits. Her remarks provide an insight into the challenges and changes shaping the real estate industry, particularly relevant for the St. Louis market.

Casper highlighted the impact of fluctuating mortgage rates on the housing market, mentioning, “We do have still such a pent-up buyer pool that’s just been waiting on the sidelines… we are starting to feel them Continue Reading →

Recent Drop in Mortgage Rates: A Turning Point for the St. Louis Real Estate Market?

By Dennis Norman, on December 15th, 2023

As we observed yesterday, there’s been a significant shift in the mortgage landscape. The interest rate for a 30-year fixed-rate conventional mortgage fell to 6.62%, the lowest since May 12, 2023, when it stood at 6.55%. This decrease might signal a turning point in the housing market, especially considering the erratic rate movements we’ve seen over the past several months.

More encouraging news comes from the FHA sector, where the 30-year fixed-rate dropped to 6.13%, marking its lowest since May 11, 2023, when it was 6.12%. These recent figures hint at a trend that could reignite buyer interest and energize Continue Reading →

Mortgage Interest Rates Show Promising Decrease, Offering Hope in the Housing Market

By Dennis Norman, on November 30th, 2023

As of yesterday, the mortgage landscape has seen a notable shift, with the interest rate for a 30-year fixed-rate conventional mortgage dropping to 7.13%, marking the lowest point since September 1, 2023, when it was 7.08%. This recent decrease offers a glimmer of hope in the housing market, especially considering the turbulent fluctuations witnessed over the past months.

Equally promising is the rate for 30-year fixed-rate FHA loans, which as of yesterday stood at 6.5%, again the lowest since September 1, 2023, when it recorded a rate of 6.45%. These latest figures suggest a trend that could lead to revitalizing Continue Reading →

Do Landlords Have to Allow Support Animals If They Have a No Pet Policy?

By Dennis Norman, on September 23rd, 2023

With changing regulations, subdivision restrictions, municipal ordinances, state and federal laws, landlords certainly have a lot to keep up with today to make sure they stay compliant in their rental business. I’ve been in the business over 40 years, have an interest-and a fair understanding of- laws that affect real estate, yet still find it challenging to stay updated. Given this, I can only imagine the challenge faced by someone with a full-time career who also owns rental properties as an investment. Perhaps, this might be a compelling reason to consider hiring a professional property manager for your rentals. However, Continue Reading →

Missouri State Assistance for Housing Relief (SAFHR) Can Help Homeowners Struggling To Make Their Payments

By Dennis Norman, on March 24th, 2023

The State of Missouri received $138 million from the U.S. Treasury’s Homeowners Assistance Fund (HAF) and are using those funds to help qualified homeowners that are struggling to make their house payments. Missouri State Assistance for Housing Relief (SAFHR) is responsible for paying out these funds to help individual homeowners.

Who is eligible for assistance from SAFHR?

According to the SAFHR program guidelines, to qualify for SAFHR for Homeowners assistance, an individual or household must:

Earn no more than 150% of the area median income for the region where the property is located, as set forth in the HUD income Continue Reading →

FHA Loans Just Became A Little More Affordable

By Dennis Norman, on February 22nd, 2023

Today, the U.S. Department of Housing and Urban Development (HUD) announced a reduction in the mortgage insurance premium charged to borrowers on FHA loans. The mortgage insurance premium is a charge over and above the interest on the loan that is the fee to HUD for insuring the loan. Currently, the FHA mortgage insurance premium varies from 0.45% to 1.05% of the loan amount depending upon the loan term (15 or 30 years) and the LTV (loan to value). Effective with FHA mortgages endorsed for insurance by FHA on or after March 20, 2023, the rate will be reduced by Continue Reading →

Lending Limits Increase on Fannie-Mae and FHA Loans

By Dennis Norman, on December 2nd, 2022

This week the Federal Housing Finance Administration (FHFA) announced that the limits for all conforming home loans to be acquired by Fannie Mae and Freddie-Mac (most of the conventional home loans originated) will increase to $726,200 on January 1, 2023. This is an increase of $79,000 for the current loan limit of $647,200.

Also this week, the Federal Housing Administration (FHA) announced that the limits for all FHA loans will increase to between $472,030 and $1,089,300 for single-family homes depending on the area the property is located in. Below are the limits for the low cost mortgage areas as well Continue Reading →

Supply of New Homes For Sale Reaches Highest Level In Over 12 Years

By Dennis Norman, on July 27th, 2022

According to the latest data from HUD and the US Census Bureau, there is a 9.3 month supply of new homes for sale in the U.S. as of June, 2022. As the chart below illustrates, this is the largest supply of new homes for sale since May 2010 when there was also a 9.3 month supply. It wasn’t that long ago, August 2020 to be exact, when the supply hit a record low level of 3.3 months.

St Louis New Home Supply is a little lower…

It’s a little hard to pinpoint the new home supply in St Louis for Continue Reading →

Mortgage Rates Fall Slightly to Lowest Level In Two Weeks

By Dennis Norman, on June 23rd, 2022

After hitting the highest rate in over 13 years just two weeks ago at 6.28%, as the chart below shows, mortgage interest rates on 30-year fixed mortgages declined today to 5.75%. The likelihood of interest staying under 6% is hard to to say at this time but I would say enjoy it while it lasts!

Search St Louis Homes For Sale Search St Louis Upcoming OPEN HOUSES Mortgage Interest Rates – 30 and 15-Year Conventional Loans, FHA Jumbo and and 5/1 ARM Loans Search St Louis Homes For Sale Search St Louis Upcoming OPEN HOUSES Continue Reading →

Inventory of New Homes In The U.S. Hits Highest level since 2010

By Dennis Norman, on June 10th, 2022

Given the low-inventory of homes for sale that has existed for some time now, it may be hard to believe my next statement, but the latest data from the U.S. Census Bureau and HUD show that there is currently a 9-month supply of newly constructed homes in the U.S. As the chart below illustrates, this is the highest level the supply of new homes in the U.S. has reached since May 2010 when there was a 9.3 month supply.

The months supply of depicted below is calculated as the ratio of new homes for sale to the number of new Continue Reading →

Mortgage-Interest Rates Hit Highest Level In Over a Year

By Dennis Norman, on January 16th, 2022

Mortgage interest rates were at 3.667% for a 30-year fixed-rate loan as of this past Thursday, January 13, 2022. As the chart below illustrates, after dipping slightly the week prior, the rates this most recent week hit the highest level in over a year.

Mortgage rates for an FHA mortgage also hit the highest level in over a year too with rates hitting 3.743%.

Search St Louis Homes For Sale Search St Louis Upcoming OPEN HOUSES Mortgage Interest Rates – 30 Years Conforming Conventional Loan -Past 12 Months

(click on chart for live, interactive chart and other Continue Reading →

Mortgage Rates Have Increased Significantly This Year

By Dennis Norman, on November 24th, 2021

As the charts below illustrate, at the beginning of this year, mortgage interest rates for a 30-year conforming conventional loan were at 2.771%, FHA loans were at 2.703%, and VA loans were at 2.372%. As of yesterday, those rates have increased to 3.357%, 3.468%, and 3.101% respectively.

While conforming 30-year conventional loans have seen an increase of 21% in rates (from 2.771% to 3.357%), FHA loans have seen an increase of 28% (from 2.703% to 3.468%) and VA loans have seen an increase of 30% (from 2.372% to 3.101%).

What does this mean in terms of the cost of a Continue Reading →

Number of St Louis Distressed Home Sales Declined Over 90 Percent In Past 10 Years

By Dennis Norman, on September 23rd, 2021

There were a total of 550 home sales in the St Louis 5-County core market during the 12-month period ended August 31, 2021, a decline of over 90 percent (90.5%) from the same period 10 years earlier. As the chart below (available exclusively from MORE, REALTORS®) illustrates, the St Louis distressed home sales 12-month trend peaked in May 2013 with 6,078 distressed home sales in the prior 12-month period and has fallen to just 550 distressed home sales for the 12-month period ended August 31, 2021. For the purposes of this report, distressed home sales include the sale of homes Continue Reading →

COVID-19 Pandemic Driven Serious Mortgage Delinquencies To Highest Levels Since The Great Recession

By Dennis Norman, on March 4th, 2021

According to a report just released by the Consumer Financial Protection Bureau (CFPB), titled “Housing insecurity and the COVID-19 pandemic“, there are over 2 million homeowners that have fallen behind at least three months on their mortgage payments. This represents a 250% increase from pre-Covid-19 levels and is now at a level we haven’t seen since the height of the Great Recession in 2010.

Homeowners with an FHA mortgage delinquency rates double rate for all loans:

As the chart below shows, homeowners with an FHA mortgage hit a serious mortgage delinquency rate of 10.8% during the 3rd quarter of 2020, Continue Reading →

Remembering Dr Martin Luther King, Jr.

By Dennis Norman, on January 18th, 2021

Today, as we celebrate the life of Dr. Martin Luther King, Jr. who is best known as a leader in the Civil Rights movement, I wanted to look at how his efforts also ultimately resulted in the Fair Housing Act, which sought to end discrimination in housing.

Through the efforts of the civil rights movement, Dr. King and others were able to get the attention of our nation resulting in President John F. Kennedy, in a nationally televised address on June 6, 1963, urging the nation to ” take action toward guaranteeing equal treatment of every American regardless of Continue Reading →

How Mortgage Forbearance Works Under CARES ACT (Video)

By Dennis Norman, on April 3rd, 2020

Yesterday, I shared information about forbearance options available to borrowers with an FHA loan that has been impacted by the COVID-19 pandemic. Today, the Consumer Finance Protection Bureau released a very informative video titled “CARES Act Mortgage Forbearance: What You Need to Know” which is below. This video contains a great explanation of what forbearance is, how it works and how to request it on your mortgage.

[xyz-ips snippet=”Homes-For-Sale”]

HUD To Allow Homeowners Impacted by COVID-19 To Defer House Payments For Up to a Year

By Dennis Norman, on April 2nd, 2020

As a result of the COVID-19 National Emergency Servicing and Loss Mitigation Program declared by President Trump, the U.S. Department of Housing and Urban Development (HUD) sent a letter yesterday to its loan servicers making them aware of new COVID-19 National Emergency Loss Mitigation Options. HUD told the lenders that the new options for borrowers go into effect immediately but the lender must implement them no later than April 30, 2020.

Highlights of the new forbearance plan:

The Mortgagee (lender) must not deny COVID-19 National Emergency Home Retention Options to Borrowers that experience an adverse impact on their ability to Continue Reading →

HUD, Fannie Mae & Freddie Mac Suspend Foreclosures for at least 60 days

By Dennis Norman, on March 18th, 2020

In response to the coronavirus pandemic, the U.S. Dept. of Housing and Urban Development (HUD), as well as the Federal Housing Finance Agency (FHFA) (which oversees Fannie Mae and Freddie Mac), directed their loan servicers to suspect foreclosures and evictions for at least 60 days to help those people affected.

In a statement, Mark Calabria, the Director of the FHFA, said that borrowers affected by the coronavirus who are having difficulty paying their mortgages should reach out to the mortgage servicers as soon as possible.

HUD Secretary Ben Carson said that “The halting of all foreclosure actions and evictions for Continue Reading →

Dr. Martin Luther King, Jr’s Life Work Led To Fair Housing In America

By Dennis Norman, on January 20th, 2020

FHA Loan Limits For St Louis MSA Increase to $331,760 January 1st

By Dennis Norman, on December 28th, 2019

The maximum loan amount for an FHA-Insured home loan on January 1, 2020, will increase from $314.827 to $331,760 for a single-family home purchased in the St Louis metro area. FHA insured home loans have lower credit standards than a typical conventional loan, require a downpayment of just 3.5% and allow all of the purchasers closing costs to be paid by the seller (up to a limit) thereby extending the opportunity of homeownership to a wider audience.

Below are all of the FHA Mortgage Limits for the St Louis MSA for 2020:

One-Family dwellings – $331,760 Two-Family dwellings – $424,800 Continue Reading →

No Cap On No Money Down VA Loan After January 1st

By Dennis Norman, on December 28th, 2019

Buying a home for veterans will get a little easier come January 1, 2020, especially those veterans moving up to a more expensive home, as a result of the Blue Water Navy Veterans Act of 2019 signed into law by President Trump in June 2019. The primary focus of the Act was to provide disability benefits to veterans who served in Vietnam, it also made significant changes to the VA Home Loan benefit available to all veterans. The VA home loan changes go into effect on January 1, 2020. Below are highlights of the changes to the VA home loan Continue Reading →

Proposed St Louis County Ordinance Would Require Landlords To Accept Section 8

By Dennis Norman, on June 8th, 2019

A bill introduced by St Louis County Councilmember Lisa Clancy would require landlords in unincorporated St Louis County to participate in the Section 8 program as well as pretty much any other rental subsidy program. St Louis County bill number 102 (see complete bill at bottom of article), introduced by Councilmember Clancy, if passed, would amend the existing St Louis County “Fair Housing Code” ordinance adding “lawful source of income” to the list of things that a landlord cannot discriminate based upon.

The St Louis County Fair Housing Ordinance (section 717.020) currently makes it unlawful for landlords to discriminate on Continue Reading →

Nearly 1 In 5 St Louis Home Sales In Past 12-Months Were Cash Deals

By Dennis Norman, on December 7th, 2018

There were 37,721 homes sold in the St Louis metropolitan area during the past 12 months as reported by MORE, REALTORS. Of those, as the chart below illustrates, conventional financing made up the lion’s share of the sales. Conventional mortgages accounted for 18,967 home sales (50.3%), followed by cash transactions with no financing that accounted for 7,109 sales (18.9%), then 6,353 (16.8%) sales with FHA loans, 2,333 (6.2%) with VA loans, and 770 (2.0%) sales financed with USDA financing. The remaining 5.8% of the home sales were financed with one of roughly 30 other lessor popular financing methods.

Search St Louis Homes For Sale Search Continue Reading →

HUD Files Housing Discrimination Complaint Against Facebook

By Dennis Norman, on August 17th, 2018

The U.S. Department of Housing and Urban Development (HUD) just announced that they have filed a formal complaint against Facebook for violating the Federal Fair Housing Act by “allowing landlords and home sellers to use its advertising platform to engage in housing discrimination“.

Some of the ways HUD alleges that Facebook platform violates the Federal Fair Housing Act include:

display housing ads either only to men or women; not show ads to Facebook users interested in an “assistance dog,” “mobility scooter,” “accessibility” or “deaf culture”; not show ads to users whom Facebook categorizes as interested in “child care” or “parenting,” Continue Reading →

Charging Pet Deposit For Service Dog Costs Landlord $20,500

By Dennis Norman, on June 13th, 2017

The U.S. Department of Housing and Urban Development (HUD) announced last week that the Silver State Fair Housing Council, and the owner/manager of four apartment complexes in Reno, Nevada had reached an agreement to settle four Fair Housing complaints. Silver Lake State Fair Housing Council filed the complaints on September 20, 2016 against ERGS, Inc. alleging ERGS had violated the Federal Fair Housing Act by charging a pet deposit to tenants with service animals. Continue Reading →

Characteristics of New Homes Sold In 2016

By Dennis Norman, on June 1st, 2017

The U.S. Department of Commerce just released it’s 2016 CHARACTERISTICS OF NEW HOUSING in which it revealed features, amenities, prices, sizes, etc of new homes built and sold during 2016 in the United States. You can see all the data in the complete report for the U.S. by clicking on the link however I’m going to just focus on the homes built here in the midwest region. Continue Reading →

Zillow’s “New” Instant Offer Is Nothing New

By Dennis Norman, on May 28th, 2017

I am always marveled by great marketing and promotion therefore I must give a tip of the hat to Zillow® for their new “Instant Offer” program. First, it’s getting them tons of attention and press, particularly within the REALTOR® community, which is probably where it is the most beneficial to them since agents are, after all, Zillow’s® paying customers. Continue Reading →