The Census Bureau’s Housing Vacancy Survey (CPS/HVS) reported the U.S. homeownership rate at 65.8% in the second quarter of 2022, which is statistically unchanged from the last quarter reading (65.4%). The national rental vacancy rate slipped to 5.6%, while the homeowner vacancy rate stayed at 0.8%. Both rental and homeowner vacancy rates are hovering near historical lows, reflecting tight housing market conditions.

The covid-induced data collection restrictions have ended in all areas as of the last quarter of 2021. However, technical issues involved with data collection changes limit useful comparisons of the data during the pandemic with the prior data series. We have especially noted the homeownership rate data for the last three quarters of 2020 with separate dots below to denote these technical issues. We encourage readers to consider these data points separately from the remaining data series.  Nonetheless, the first three quarters of 2021 likely return the series to a more apples-to-apples comparison with the prior history of the series.

The homeownership rates of adults ages less than 35, 35-44 and 44-54 increased over the last year, while the remaining two older age groups experienced decreases. The homeownership rates among households ages less than 35 registered the largest gains among all age groups, from 37.8% to 39.1%, followed by households ages 45-54 with 1.2 percentage point increase from 69.4% to 70.6%. Households ages 35-44 experienced a modest 0.6 percentage point increase. However, homeownership rates of households ages 55-64 and 65+showed a decline of 0.3 percentage points.

While the total housing inventory estimates were unaffected by the data collection changes during the COVID-19 pandemic,  the estimates of homeownership rates, vacancy rates, and the components of housing inventory were affected severely until the second quarter of 2021 when in-person interviews were allowed in 99% of the country. The housing stock-based HVS revealed that the count of total households increased to 128.0 million in the second quarter of 2022 from 126.3 million a year ago. The gains are largely due to strong owner household formation (1.6 million increase), while renter households only increased by 81,000.

BY NA ZHAO

The share of prospective home buyers who are actively engaged in the process to buy a home rose to 49% in the second quarter of 2022, after declining for three straight quarters.  The pivot is likely driven by less competition from buyers who have exited the market, which has encouraged many of those remaining to become active buyers.

Except for the South, the share of prospective buyers actively searching for a home rose in every region between the first and second quarters of 2022: Northeast (50% to 54%), Midwest (40% to 51%), and West (46% to 57%).

In the second quarter of 2022, the share of active buyers who have been looking for a home for 3+ months fell to 63%, down from 67% in the previous quarter.  The share is at its lowest point in almost two years (since the third quarter of 2020, when it was 62%). Before the pandemic (between the first quarters of 2018 and 2020), fewer than 60% of active buyers shopped for a home for 3+ months.

**Results come from the Housing Trends Report (HTR) – a research product created by the NAHB Economics team with the goal of measuring prospective home buyers’ perceptions about the availability and affordability of homes for-sale in their markets.  The HTR is produced quarterly to track changes in buyers’ perceptions over time.  All data are derived from national polls of representative samples of American adults conducted for NAHB by Morning Consult.  Results are seasonally adjusted.  A description of the poll’s methodology and sample characteristics can be found here.  This is the fifth in a series of six posts highlighting results for the 2^nd quarter of 2022.

BY ROSE QUINT

WASHINGTON, D.C. – The Department of Housing and Urban Development announced today its proposals for updating the Manufactured Home Construction and Safety Standards, commonly referred to as the “HUD Code.” The proposed updates were published in the Federal Register and are the largest set of changes to the HUD Code in over two decades. The updates support the Biden-Harris Administration’s priority of expanding the supply of manufactured housing as a component of its efforts to address the nation’s housing supply challenges.

“Manufactured homes are an important element of the nation’s affordable housing supply,” said Assistant Secretary for Housing Julia Gordon. “These proposed updates, when final, will help to expand the availability of safe and affordable homes that align with current design trends and construction methods.”

Containing new and updated standards, including 88 standards incorporated by reference, the proposed rule will bring the HUD Code in line with more recent manufactured housing industry standards and further improve the quality and safety of manufactured home construction. Proposed changes in the rule will facilitate innovation and greater production of manufactured homes with features that are sought-after by consumers and that are common consumer needs for modern living, including: multi-unit dwellings; ridge-roof designs; open floor plans, truss designs, specifications for attics, and accessibility improvements, among others.

When final, the updates contained in the proposed rule will enact a significant number of recommendations made by the federally-mandated Manufactured Housing Consensus Committee. Further, the updates will eliminate the need for manufacturers to obtain alternative construction approvals for frequently requested features and materials that already meet or exceed HUD standards.

The proposed updates are available for public comment for 60 days. Comments must be submitted via the methods described in the proposed rule.

Fact Sheet
Proposed Updates to HUD Manufactured Home Construction and Safety Standards
July 19, 2022

22 million people live in manufactured homes throughout the country. The Biden-Harris Administration views manufactured homes as a priority solution for solving the nation’s affordable housing challenges. Proposing updates and additions to the Manufactured Home Construction and Safety Standards, commonly referred to as the “HUD Code” is one way HUD is playing a leading role in fostering increased production and broader consumer acceptance of manufactured housing as a viable, affordable, and comparable alternative to a site-built home.

Summary of HUD Code Updates Contained in the July 19, 2022, Proposed Rule

Key proposed additions and updates included in the proposed rule will allow:

• Materials that facilitate modern design approaches and improve quality: Updates to reference standards for materials (wood, steel, piping) and products will align with other building standards, will allow the use of more modern design approaches and installation of alternative materials, and will improve the quality and safety of homes for consumers.
• Ridge roof designs: Revising definitions and regulatory language will allow certain specified roof ridge designs (peak cap and peak flip roof assemblies) without a requirement for specific on-site inspections by a HUD-approved agency, except for certain exclusions. This type of roof installation is common throughout the industry and uses technology that is time-tested. This will be beneficial for manufacturers and consumers by incorporating more recent design practices into the regulations and eliminating unnecessary inspections and associated costs.
• Multi-unit manufactured homes: Proposed changes to regulatory language address multi-unit dwellings, proposing allowance of up to three units while assuring comprehensive fire safety to multi-unit occupants by adding benchmarks and guidelines that meet Manufactured Housing Construction and Safety standards. This may help to further leverage manufactured housing as a means of addressing affordable housing needs.
• Open floor plans, truss designs, and specifications for attics: The updated requirements for exterior door separation and structural design requirements will improve allowances for open floorplans while maintaining fire safety, clarify unclear provisions, and allow potential for optimization of truss design. In addition, the proposed rule will include more clarity regarding structural design requirements for attics.
• Accessibility improvements: Modifications to standards for accessible showers will comply with nationally-recognized disability standards for roll in showers. This will eliminate the need for HUD alternative construction approval and reduce cost and burdens for manufacturers and consumers.
• Modern and energy-saving appliances: Updating and adding new standards will allow for the use of more modern and energy efficient appliances, including gas-fired tankless water heaters, eliminating the need for HUD alternative construction approvals for use of such appliances.
• Additional process efficiencies that save time and reduce costs: Improved language stipulating prerequisites for the process of obtaining installation licenses will increase flexibility for installers; updates to water system piping testing procedures will decrease on-site testing time; and utilization of appliance QR codes for manuals and information will reduce paperwork and bookkeeping.

About the Manufactured Home Construction and Safety Standards (HUD Code)

The National Manufactured Housing Construction and Safety Standards Act of 1974 (the Act) authorizes HUD to establish federal standards for the design and construction of manufactured homes to assure quality, durability, safety, and affordability. Effective in 1976, HUD established the Manufactured Home Construction and Safety Standards, commonly known as the HUD Code, which has worked to transform manufactured homes in quality, safety, durability, and affordability.

HUD standards may preempt state and local laws that do not conform to the HUD standards. HUD’s Office of Manufactured Housing Programs enforces standards directly or through State Administrative Agencies that have partnered with HUD, monitors inspections of factories and retailer lots, regulates installation standards for the homes, administers a dispute resolution program for defects, establishes and collects a fee for each home built, authorizes a certification label to be placed on each section of a home that meet the HUD standards, and pursues a civil or criminal action for violations of the Act.

About the Manufactured Housing Consensus Committee

The Manufactured Housing Consensus Committee (MHCC) is a statutory Federal Advisory Committee body charged with providing recommendations to the Secretary of HUD on the adoption, revision, and interpretation of HUD’s Manufactured Home Construction and Safety Standards and related procedural and enforcement regulations. The MHCC was also charged with developing and proposing model installation standards to the Secretary of HUD, so HUD could enact model manufactured home installation standards and implement an installation program for the manufactured housing industry. By regulation, HUD also engages the MHCC in the process of revising the Manufactured Home Model Installation Standards and Installation Program Regulations.

Source: https://www.hud.gov/press/press_releases_media_advisories/HUD_No_22_133

Are you having trouble keeping up with your mortgage payments? Have you received a notice from your lender asking you to contact them?

• Don’t ignore the letters from your lender
• Contact your lender immediately
• Contact a HUD-approved housing counseling agency
  Toll FREE (800) 569-4287
  TTY (800) 877-8339

If you are unable to make your mortgage payment:

1. Don’t ignore the problem.

The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

2. Contact your lender as soon as you realize that you have a problem.

Lenders do not want your house. They have options to help borrowers through difficult financial times.

3. Open and respond to all mail from your lender.

The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notices of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.

4. Know your mortgage rights.

Find your loan documents and read them so you know what your lender may do if you can’t make your payments. Learn about the foreclosure laws and timeframes in your state (as every state is different) by contacting the State Government Housing Office.

5. Understand foreclosure prevention options.

Valuable information about foreclosure prevention (also called loss mitigation) options can be found online.

6. Contact a HUD-approved housing counselor.

The U.S. Department of Housing and Urban Development (HUD) funds free or very low-cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender, if you need this assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287 or TTY (800) 877-8339.

7. Prioritize your spending.

After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses–cable TV, memberships, entertainment–that you can eliminate. Delay payments on credit cards and other “unsecured” debt until you have paid your mortgage.

8. Use your assets.

Do you have assets–a second car, jewelry, a whole life insurance policy–that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don’t significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.

9. Avoid foreclosure prevention companies.

You don’t need to pay fees for foreclosure prevention help–use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month’s mortgage payment) for information and services your lender or a HUD-approved housing counselor will provide free if you contact them.

10. Don’t lose your house to foreclosure recovery scams!

If any firm claims they can stop your foreclosure immediately and if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional or a HUD-approved housing counselor.

Real Estate Settlement Procedures Act1 The Real Estate Settlement Procedures Act of 1974 (RESPA) (12 U.S.C. 2601 et seq.) (the Act) became effective on June 20, 1975. The Act requires lenders, mortgage brokers, or servicers of home loans to provide borrowers with pertinent and timely disclosures regarding the nature and costs of the real estate settlement process. The Act also prohibits specific practices, such as kickbacks, and places limitations upon the use of escrow accounts. The Department of Housing and Urban Development (HUD) originally promulgated Regulation X which implements RESPA. Congress has amended RESPA significantly since its enactment. The National Affordable Housing Act of 1990 amended RESPA to require detailed disclosures concerning the transfer, sale, or assignment of mortgage servicing. It also requires disclosures for mortgage escrow accounts at closing and annually thereafter, itemizing the charges to be paid by the borrower and what is paid out of the account by the servicer. In October 1992, Congress amended RESPA to cover subordinate lien loans. Congress, when it enacted the Economic Growth and Regulatory Paperwork Reduction Act of 1996,2 further amended RESPA to clarify certain definitions including “controlled business arrangement,” which was changed to “affiliated business arrangement.” The changes also reduced the disclosures under the mortgage servicing provisions of RESPA. In 2008, HUD issued a RESPA Reform Rule (73 Fed. Reg. 68204, Nov. 17, 2008) that included substantive and technical changes to the existing RESPA regulations and different implementation dates for various provisions. Substantive changes included a standard Good Faith Estimate form and a revised HUD-1 Settlement Statement that were required as of January 1, 2010. Technical changes, including streamlined mortgage servicing disclosure language, elimination of outdated escrow account provisions, and a provision permitting an “average charge” to be listed on the Good Faith Estimate and HUD-1 Settlement Statement, took effect on January 16, 2009. In addition, HUD clarified that all disclosures required by RESPA are permitted to be provided electronically, in accordance with the Electronic Signatures in Global and National Commerce Act (E-Sign).

Credits: HUD

Read the entire article – https://files.consumerfinance.gov/f/201308_cfpb_respa_narrative-exam-procedures.pdf

The Agricultural Conservation Easement Program (ACEP) protects the agricultural viability and related conservation values of eligible land by limiting nonagricultural uses which negatively affect agricultural uses and conservation values, protect grazing uses and related conservation values by restoring or conserving eligible grazing land, and protecting and restoring and enhancing wetlands on eligible land.

Benefits

Agricultural Land Easements protect the long-term viability of the nation’s food supply by preventing conversion of productive working lands to non-agricultural uses. Land protected by agricultural land easements provides additional public benefits, including environmental quality, historic preservation, wildlife habitat and protection of open space.  Additionally, ALE easements leverage local partnerships to match NRCS funding and local partners are responsible for the long-term stewardship of the easement.

Visit here – https://www.nrcs.usda.gov/wps/portal/nrcs/main/national/programs/easements/acep/

Who is eligible?

• Eligible partners include American Indian tribes, state and local governments and non-governmental organizations that have farmland, rangeland or grassland protection programs.
• Eligible landowners include owners of privately held land including land that is held by tribes and tribal members.
• All landowners, including required members of landowner-legal entities, must meet adjusted gross income (AGI) limitations and must be compliant with the HEL/WC provisions of the Food Security Act of 1985.

What land is eligible?

Land eligible for agricultural easements includes private or Tribal land that is agricultural land, cropland, rangeland, grassland, pastureland and nonindustrial private forest land. NRCS will prioritize applications that protect agricultural uses and related conservation values of the land and those that maximize the protection of contiguous acres devoted to agricultural use, including land on a farm or ranch.

Eligible Land Types and which also meets one of the four following land eligibility criteria:

1. Parcels enrolled to protect Prime, Unique, or Other productive soil.
2. Parcels enrolled to provide protection of grazing uses and related conservation values.
3. Parcels containing historical or archeological resources.
4. Land that furthers a state or local policy consistent with the purposes of ACEP-ALE.

The latest Federal Reserve Z.1 Financial Accounts of the United States, i.e., the “Flow of Funds”, show that in the second quarter of 2021 the aggregate market value of all owner-occupied real estate in the United States registered the largest quarterly increase in the last 21 years of data. From $33.8 trillion in the first quarter of 2021, real estate rose by $1.1 trillion in value to $34.9 trillion, making it the largest quarterly increase on record. As a previous post details, the second quarter also saw unsustainably high home price appreciation due to lack of inventory.

BY LITIC MURALI