Affordable Housing Starts With Free 24 - 7 access To One's Credit Report & Credit Score
Your credit report & credit score determines the price you pay for every major necessity in life. Housing, transportation, insurance, and employment. With the passing of Dodd - Frank financial Services companies have initiated what is referred to as; Risk-based Pricing , this attempts to
match the price a borrower pays to the cost incurred by the financial services company by tailoring the price of the product to a borrower’s credit score.
The Problem: according to a study conducted by the Federal Trade Commission, ONE in FIVE people have an error on at least one of their credit reports. Errors on your credit reports can lower your credit score, which could hurt your ability to get new lines of credit or make the terms of credit more expensive. Ultimately, these errors could be costing you money. Therefore I will be fighting for citizens to have; 1. 24 - 7 access to your complete credit file from all repositories. 2. Instant notification of all derogatory reporting and inquiries.
Invest in new Supply (i.e., development). We need to build and invest in as much new housing as possible, with an emphasis on affordable median priced product in order to help offset the nationwide gap. As incomes rise and people are able to afford higher rents, they step up out of the older, more affordable housing stock, leaving room for the next generation of middle-income families to step in.
Invest in Older Assets (i.e., value-add). We must also invest in the improvement of older, neglected single families and multifamily assets and deem a portion of them affordable for people at the low and moderate end of the economic spectrum. It has been my observation and experience that this strategy, if done correctly, tends to pay out stronger, more reliable cash flow than new supply.
INVEST IN HOME OWNERSHIP . I will be fighting for a First -Time Homebuyer Program tied to income levels that are mostly affected by affordability. I find it compelling Homeownership is The American Dream however the U.S does not have a True 1st time homebuyer program. My legislation calls for Federal Housing Administration (FHA), secured by Gennie Mae, to implement a home lending product to compliment the Community Reinvestment Act (CRA). The program will include, First Time Homebuyer Financial course, (20 hrs.) . Down Payment Assistance, Allowed Employer Subsidy, and more.
Simultaneously, we need to invest in keeping individuals and families in their existing owned homes, thus preventing foreclosures. Individual investors can invest directly in this effort through expert sponsors such as American Home Preservation Fund, which essentially purchases pools of nonperforming mortgages sold at significant discounts from mortgage holders. These funds use investor money to purchase these pools, then work with homeowners to find sustainable solutions that keep them in their homes, and investors receive returns from the profits.
Affordable Housing must be met with GSE reform. Without GSE reform borrowers will be denied the benefits of a more vibrant secondary market, lenders will face increased uncertainty about the future, and private-label security (PLS) issuers and investors will hesitate to fully engage in the market. In short, the status quo is an unacceptable long-term outcome.