![]() The Federal Housing Finance Agency issues an annual report on these loan sales. ![]() Many of these properties were turned into single-family home rentals or formed into investment trusts. These auctions created opportunities for private equity institutional investors to invest in mortgages at deeply discounted prices. The auctions of these loans began in 2015, with the purpose of reducing the huge stockpile of loans caused by the Financial Crisis. Many of the mortgage owners and landlords made billion dollar purchases of failed loans from Fannie Mae, Freddie Mac and HUD. Real estate investors paid attention to the developing market for single-family home rentals and apartment trends. Despite the costs and distrust, a recent (September, 2020) study by Bank of America found that nearly 90% of prospective home buyers remain motivated to buy their first house.Ĭompetition for single-family homes increased significantly after 2015. Some lenders are offering programs to help with down payments, but after the foreclosure crisis, many Americans distrust banks, mortgages and lenders. A down payment lower than 20%, however, raises the monthly mortgage payment because the borrowers will have to add the cost of private mortgage insurance (PMI). According to many studies, housing is still unaffordable to average workers in the United States because they cannot afford the down payment, which is 10% to 15% of the purchase price. Renters and homeowners made housing decisions based in part on student loan debt ($1.48 trillion) and daycare costs. 82% of renters view renting as more affordable than home ownership. According to a study by the Federal Home Loan Housing Corporation in June 2019 of renters and homeowners, 44% of renters and 35% of owners who had trouble affording their housing payment over the last two years reported having to move to afford housing costs. Many real estate investments were made in the last five years because more Americans chose to rent rather than buy their homes and apartments. International investment companies, hedge funds and major banks are the powerful forces behind the owners of mortgages, houses, condominiums and apartments. As Americans caught up in the Covid crisis run out of money for rent and mortgage payments, they will often be facing evictions and foreclosures by publicly-traded corporate landlords and by trusts with almost indecipherable names.
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