Today, AEI’s International Center on Housing Risk (ICHR) and First American Financial Corporation release the AEI/First American National Housing Market Index (NHMI), the first index ever to analyze sales transaction volume for the entire home purchase market. The national housing market continued its rally in the fourth quarter of 2016. On an annualized basis, 5,810,000 […]
About Edward Pinto
American Enterprise Institute (AEI) resident fellow Edward J. Pinto is the codirector of AEI’s International Center on Housing Risk. He is currently researching policy options for rebuilding the US housing finance sector and specializes in the effect of government housing policies on mortgages, foreclosures, and on the availability of affordable housing for working-class families. Pinto writes AEI’s monthly Housing Risk Watch, which has replaced AEI’s FHA Watch. Along with AEI resident scholar Stephen Oliner, Pinto is the creator and developer of the AEI Pinto-Oliner Mortgage Risk, Collateral Risk, and Capital Adequacy Indexes.
An executive vice president and chief credit officer for Fannie Mae until the late 1980s, Pinto has done groundbreaking research on the role of federal housing policy in the 2008 mortgage and financial crisis. Pinto’s work on the Government Mortgage Complex includes seminal research papers submitted to the Financial Crisis Inquiry Commission: “Government Housing Policies in the Lead-up to the Financial Crisis” and “Triggers of the Financial Crisis.” In December 2012, he completed a study of 2.4 million Federal Housing Administration (FHA)–insured loans and found that FHA policies have resulted in a high proportion of working-class families losing their homes.
Pinto has a J.D. from Indiana University Maurer School of Law and a B.A. from the University of Illinois at Urbana-Champaign.
Entries by Edward Pinto
The U.S. home ownership rate, as recently reported by the Census Bureau, dropped to 62.9% in the second quarter of 2016, a rate about equal to the rate of 61.9% reported over a half century ago for 1960. This stagnation compares unfavorably to 1900 to 1960 when the non-farm homeownership rate increased from 36.5% to […]
Today’s government-centric housing finance system is an “economics free zone” indifferent to supply and demand. Composed of an alphabet soup of agencies, this system has fostered a massive liberalization of mortgage terms and provided countless trillions of dollars in lending in up and down markets. At the same time, other government polices constrain supply. As […]
Ten to twenty years after their original development many affordable multifamily properties face two common shortcomings: an inability to fulfill their long-term affordability commitments without additional public subsidies and insufficient funds for proper maintenance and avoidance of blight. The propensity for blight, leaves public funders with bad choices: accept blight or throw good money after […]
The below chart (left panel) shows a shift away from both large and other banks that dwarfs even what has happened with share shift for lender FHA purchase loan share. Said another way, banks in general have largely exited the FHA refinance market, with non-banks accounting for 90% share in February. This is a continuation […]
As famously stated by Fed Chairman William McChesney Martin in 1955: “The Federal Reserve, after the recent increase in the discount rate, is in the position of the chaperon who has ordered the punch bowl removed just when the party was really warming up.” As the Fed is now finding out, removing the punch bowl […]
A recent Associated Press poll found more than six in 10 respondents expressed only slight confidence — or none at all — in the ability of the federal government to make progress on important issues facing the country. The public’s skepticism is well founded, especially when it comes to federal housing policy. Notwithstanding an alphabet […]
My predictions for 2016: The National Mortgage Risk Index (NMRI), particularly for First-Time Buyers (FTBs), will continue its upward trend that is now nearly 3 years old. Demand pressure resulting from continuing moderate economic growth combined with increasing leverage and limited housing supply growth will extend the seller’s market that is now over 3 years […]
New analysis by Tobias Peter, research analyst at AEI’s International Center on Housing Risk (ICHR), uncovered serious flaws with respect to the Federal Reserve’s quarterly Senior Loan Officer Opinion Survey on Bank Lending Practices when compared to ICHR’s much more comprehensive and timely National Mortgage Risk Index (NMRI). Earlier this week the Fed released the […]
Last week the Fed announced it would once again delay liftoff from its zero interest rate policy. During her press conference, Fed Chair Janet Yellen noted that “[the housing market] remains very depressed.” Has the Fed missed the housing liftoff? July existing home sales were at a seasonally adjusted annual rate of 5.6 million, the […]
The Spring home buying season continues to show strength, buoyed by strong first-time buyer volume and share. Historically low mortgage rates, an improving labor market, and loose credit standards, combined with a 32-month-long seller’s market for existing homes, continue to drive up home prices faster than income. The continued loosening of lending standards during a […]
April’s results continue to show that first-time buyer volume and share remain strong, showing little variance beyond seasonal trends. However, the first-time buyer Mortgage Risk Index hit a series high of 15.28 percent in April, moving deeper into the high risk loan category. This growing leverage puts the housing market at risk given interest rates are […]
The central role housing policy played in causing the financial crisis has been gaining greater and greater acceptance, but much more remains to be done as new efforts are underway to double down on disaster. Earlier this year, my colleague Peter Wallison came out with his new book Hidden in Plain Sight: What Really Caused the World’s […]
Study shows seismic shift in lending away from large banks to non-banks continued in February By Stephen D. Oliner, Edward J. Pinto and Brian C. Marein. A new study released by the AEI International Center on Housing Risk found that the seismic shift in home purchase loan originations away from large banks to non-banks continued […]
SUMMARY: First-time buyers accounted for nearly 56 percent of primary owner-occupied home purchase mortgages with a government guarantee, up slightly from the prior February. The Combined FBMSI (which measures the share of first-time buyers for both government-guaranteed and private-sector mortgages) stood at an estimated 50 percent. The number of primary owner-occupied purchase mortgages going to […]