Newsletter: December 2024
December 20, 2024
As we approach the holidays and 2025, USMI has been busy working to promote access to affordable and sustainable low down payment mortgages for homebuyers across the country. USMI recently released our 2024 National Homeownership Market Survey that highlighted key housing market insights, including that 78% of Americans find it important to own a home – up 6 percentage points since USMI’s 2021 survey. We also recently issued a statement on the Federal Housing Administration’s (FHA) 2024 Annual Financial Report to Congress, and congratulated Rep. French Hill on his selection as the next Chairman of the House Financial Services Committee and Scott Turner on his nomination to serve as the Secretary of the Department of Housing and Urban Development (HUD). Read about these developments and more below.
On October 24, USMI released its 2024 National Homeownership Market Survey that found that nearly 8 in 10 Americans (78%) believe owning a home is very important (6% higher than USMI’s 2021 National Homeownership Market Survey). While homeownership is very important to survey respondents, nearly 6 in 10 of all adults believe buying a home has become more difficult. The chief reason Americans believe owning a home is important is the stability it provides, followed by it being a good investment. Only one-third of adults are aware that it is possible to qualify for financing with only 3% or 5% down.
The 2024 National Homeownership Market Survey was conducted by USMI to take the pulse of consumers regarding the housing market and gain insights into the perceptions of homeowners, future buyers, and renters across socioeconomic and racial strata. “The data show that those who will help drive the rate of homeownership up in the U.S. see the down payment as their biggest challenge,” said USMI President Seth Appleton. “However, the data also show that while mortgage insurance is recognized as helpful in breaking down this barrier, there is low awareness that three and five percent down payment mortgages are as widely available as they are. Everyone in the ecosystem should help to raise awareness about low down payment options that sustainably expand access to affordable mortgage financing,” Appleton continued. The survey was also an update from USMI’s 2021 research. Read the summary of the 2024 survey here and the full 2024 survey results here.
On November 15, USMI issued a statement on FHA’s release of its Fiscal Year 2024 Annual Report to Congress on the financial status of the Mutual Mortgage Insurance Fund (MMIF). In the statement, Appleton stated, “FHA plays an important countercyclical role in America’s housing finance system, and it must remain strong and well-capitalized in order to perform this critical function. While taxpayers stand behind 100% of the credit risk for FHA-insured mortgages, private capital stands in a first-loss position for low down payment loans backed by private MI.” Appleton continued, “[a]s such, policymakers should ensure that there is a consistent, transparent, and coordinated approach to housing policy, so that private capital can protect against credit risk ahead of taxpayers whenever possible. This approach would enable FHA to focus on its mission of supporting borrowers who do not have access to traditional financing and ensure that it can play its countercyclical role under all economic conditions.” USMI’s statement was covered by Mortgage Professional America, Inman, National Mortgage News, and Inside Mortgage Finance.
On December 12, USMI applauded the selection of Representative French Hill (R-AR-02) to be the next Chairman of the U.S. House of Representatives Committee on Financial Services. Appleton stated, “Congressman Hill’s tenure on the committee reflects a long record of leadership to advance prudent homeownership opportunities for low down payment borrowers, while protecting the housing finance system, government, and taxpayers from undue credit risk. USMI looks forward to working with the incoming Chairman and members of the Committee to advance solutions to expand homeownership opportunities for hardworking Americans, while also ensuring a safe and sound housing finance system with robust taxpayer protection backed by private capital.”
On November 23, USMI applauded the nomination of Scott Turner to lead the Department of Housing and Urban Development (HUD). Appleton commented, “USMI applauds the nomination of Scott Turner as the next HUD Secretary. Scott is a distinguished leader whose housing, community development, non-profit, and public service experience prepare him well for this important role. Known for his passion for economic empowerment, Scott has consistently demonstrated a deep dedication to uplifting underserved communities.” Appleton continued, “[a]s a former colleague, I am confident that with his leadership and results-driven approach, Scott is poised to make a profound impact at HUD and I commend the President-elect for nominating him. USMI and the private mortgage insurance industry look forward to working with Scott Turner as HUD Secretary to foster a coordinated and robust housing finance system that prudently enables sustainable homeownership for American families.”
On October 2, USMI welcomed the introduction of Senator Tim Scott’s (R-SC) Renewing Opportunity in the American Dream Act (ROAD to Housing Act) and the House companion led by Congressman French Hill (R-AR), welcoming the focus of Congress on solutions to address our nation’s housing affordability challenges. The ROAD to Housing Act includes important measures that would enhance the frequency and level of detail in data reported by the FHA and institute a formal mechanism for the HUD Secretary to appear before Congress on an annual basis, both of which align with USMI’s longstanding advocacy in support of a consistent, transparent, and coordinated approach to the federal government’s housing policy among regulators, policymakers, and other stakeholders.
On October 7, USMI joined the Mortgage Bankers Association (MBA) and other leading industry stakeholders in the formation of the CONVERGENCE Collaborative – a coordinated effort designed to help address the racial homeownership gap. Over the next three years, the CONVERGENCE Collaborative aims to deploy more than $1 million annually to build on the existing network of location-based CONVERGENCE sites focused on expanding minority homeownership.
“USMI’s members work every day to help borrowers overcome one of the biggest barriers to homeownership for first-time, low- and moderate-income, and minority homebuyers: the need for a large cash down payment,” said Appleton on the collaborative. “We welcome the opportunity to partner with the CONVERGENCE Collaborative on collective strategies to support sustainable and affordable homeownership for underserved communities across the country.”
The Collaborative received media coverage from Inside Mortgage Finance, HousingWire, Mortgage Orb, Financial Regulation News, Mortgage Professional America, National Mortgage News, and Weekly National Real Estate.
In honor of Hispanic Heritage Month, and as an industry designed to enable access to homeownership, especially for first-time, low- to moderate-income (LMI), and minority homebuyers, USMI highlighted how the Hispanic community contributes to the U.S. housing market. On October 15th, USMI published a blog that, using new data from the USMI 2024 National Homeownership Market Survey, provided important insights on how and why Hispanic households access homeownership, along with ways the industry can work to make affordable and sustainable homeownership a reality for this important and growing segment of households. Hispanics expressed strong interest in homeownership, with 75% of Hispanic survey respondents answering that owning a home is important to them – up 8% from 2021. Fifty-five percent of Hispanics answered that the ability to access homeownership faster was an important reason to support private MI. In 2023, 125,000 Hispanic households purchased a home with low down payment conventional mortgages backed by private MI.
On October 15, USMI joined a broad cross-section of housing industry, advocacy, and civil rights organizations in sending letters to the House Committee on Ways and Means Chairman Jason Smith (R-MO-08) and Ranking Member Richard Neal (D-MA-01) regarding the tax treatment of mortgage insurance premiums. As tax writers assess the expiring and permanent provisions of the Tax Cuts and Jobs Act (TCJA), USMI encourages congressional action to support existing homeowners and prospective buyers by reinstating, making permanent, and expanding eligibility for the mortgage insurance premium tax deduction, which was available to eligible taxpayers from 2007 to 2021. Click here for the full letter to Chairman Smith and here for Ranking Member Neal.
On November 14, Inside Mortgage Finance’s Monica Hogan published an article following an interview with Appleton on the changes that the incoming Trump administration is likely to bring to the housing sector, saying “there is ‘no shortage of very talented people’ who could lead FHA or Ginnie. He believes the Trump transition team would ensure there is a HUD Secretary in place before nominating agency heads, to ensure the team has the right mix of skills and they’re all aligned with HUD’s policy positions in the new administration. ‘Senate confirmation is an important part of the process for all of these,’ he said.”
