Entries by Edward Pinto

The AEI Housing Center’s Critique of “How We Investigated Racial Disparities in Federal Mortgage Data”

The Rest of the Story The American Enterprise Institute’s Housing Center released a special briefing: “The Rest of the Story The AEI Housing Center’s Critique of ‘How We Investigated Racial Disparities in Federal Mortgage Data.‘” The call reports on the Housing Center’s analysis of and critiques of a widely-circulated report by The Markup/Associated Press: “How […]

Connecting the Dots: How the Latest Affordable Housing Policy Benefits Homeowners and Realtors, not First-time Buyers

Tobias Peter, senior research analyst at the AEI Center on Housing Markets and Finance, wrote the following blog post: Connecting the Dots: How the Latest Affordable Housing Policy Benefits Homeowners and Realtors, not First-time Buyers. In it he explains how “another government housing policy intended to open “the door to home purchase mortgages for large numbers of […]

BankThink: Mortgage deduction helps housing lobby, but not homeowner

The battle lines are drawn between those seeking to protect the mortgage interest deduction (MID) and a legislative effort to greatly reduce the use of the MID. Hopefully, this is a battle that taxpayers will win over the housing lobby — the loudest supporter of keeping the deduction intact. The housing lobby’s effectiveness is measured […]

Realtors and Homebuilders Put Profits Over Middle Class

By Peter J. Wallison & Edward J. Pinto Two powerful lobbying groups that advertise themselves as helping Americans buy homes have announced that they will oppose the Republican tax plan. Their reason? Because it will lower housing costs. Seldom have any denizens of “the Swamp” shown their true colors quite so flagrantly. For years, the National Association of Realtors and the National […]

Index finds Rallying Home Purchase Market in 2016

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 […]

It’s Time to Put the Market Back in Housing Finance

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 […]

Affordable multifamily housing loans need rethinking: The ‘Blight Preventer’ Loan

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 […]

Housing Finance’s Two Punch Bowls by the Federal Government Should Be Removed

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 […]

Why the 20-Year Mortgage Is the Answer to Housing Finance Mess

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 […]

Five Housing Market Predictions for 2016

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 […]

Serious flaws uncovered in Federal Reserve’s Bank Lending Practices

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 […]