independent news and opnion

Elizabeth Warren Wants to Break Wall Street’s Stranglehold on the Rental Housing Market

0 26

Elizabeth Warren took aim last week at another pillar of Wall Street’s empire: the rental housing market. In a portion of her updated version of her ambitious 2018 housing bill, Warren proposed a check on the unregulated takeover of rental housing by the country’s biggest investment firms. Instead of allowing Wall Street-backed developers to flip any distressed and foreclosed mortgage into a single-family rental unit, her bill would require the government to help keep the majority of these homes in the possession of individuals, community groups, and affordable-housing developers by setting aside a supply of mortgages that Wall Street can’t touch.

Warren’s bill seeks to chip away at predatory mortgage-flipping practices, by requiring the Federal Housing Authority to sell a minimum of 75 percent of single-family properties acquired through foreclosure to owner-occupant buyers or to community groups who will rehab the properties and sell them to owner-occupants. The bill also puts limitations on the sale of non-performing loans—those that a borrower has failed to make payments on—by the Department of Housing and Urban Development (HUD), and requires greater transparency with borrowers. And, it offers support for families whose housing wealth was destroyed by the financial crisis by investing $2 billion in borrowers with negative equity on their mortgages, predominantly in suburban and rural communities.

Source link

You might also like

Thanks !

Thanks for sharing this, you are awesome !