MReport August 2022

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M R EP O RT | 43 O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST ORIGINATION Homebuyer Assistance Programs Continue to Grow During a quarter of difficult buying conditions, Down Payment Resource's Q2 2022 HPI report shows sufficient growth in homebuying assistance programs for the third consecutive quarter, despite economic conditions limiting available funding. D own Payment Re- source (DPR) has an- nounced findings from its latest Homeown- ership Program Index (HPI), while the firm's analysis of 2,273 homebuyer assistance programs in its Down Payment Resource database revealed that the net number of homebuyer assistance programs increased by 1.6% from Q1 to Q2 2022. This marks the third consecutive quarter the number of homebuyer assistance programs has grown. The Q2 2022 HPI examined a total of 2,273 homebuyer assistance programs that were active as of July 5, 2022. Key findings are as follows: • The net number of homebuyer assistance programs increased. The number of programs increased by 35 in Q2 of 2022. Among them were five nation- wide or multistate programs and 12 statewide programs. Assistance for first mortgages, combined down payment and closing cost support, com- munity second mortgages, and deed restriction programs were also added. • Support for manufactured homes increased again. For the third consecutive quarter, the number of programs that support manufactured home purchases have increased. Six hundred and twenty-five programs now support manu- factured home loans, up from 594 in Q1 2022. • Programs offering veteran ex- emptions grew. The number of programs that waive first-time homebuyer requirements for veterans increased from 176 to 184 (4.5%) this quarter. "Despite a slight increase in the number of inactive and suspended programs, our analysis indicates that opportunities for home- buyer assistance are continuing to grow," DPR CEO Rob Chrane said. "With inflation reaching 40-year highs, aggressive interest rate hikes and limited housing inventory, connecting consum- ers with financial support for down payment and closing costs is more important than ever. In this especially challenging hous- ing market, program providers are finding creative ways to help qualified homebuyers overcome economic obstacles and achieve the long-term financial benefits of homeownership." Breakdown of New Programs A breakdown of the home- buyer assistance programs added last quarter are as follows: • By assistance type: Four first mortgage programs, 11 com- bined assistance programs, five community seconds, six deed restriction programs, and two Mortgage Credit Certificate (MCC) programs were added, among others. • By region: There was a 7.6% in- crease in nationwide programs, a 1% increase in programs supporting home purchases in defined locales and a 1.3% increase in statewide programs. Programs supporting the western United States saw the largest percent growth of any region, increasing by 2.8%. • By funding source: To-be- announced (TBA) programs saw the largest overall growth over the previous quarter with 12 TBA-funded programs add- ed, a quarterly increase of 5.5%. Other funding sources that saw an increase in the number of programs available were bond programs, which increased by 2.2%, and State Housing Initiatives Partnership (SHIP) programs, which increased by 1.5%. The number of inactive and temporarily suspended homebuy- er assistance programs grew in Q2 2022, but this minor decrease in available funding was offset by the 35 programs added in the same timeframe. With inflation reaching its highest point in 40 years amid rising interest rates, expanding homeownership acces- sibility through down payment and closing cost assistance are important to serving homebuyers in these market conditions.

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