December 10, 2019

In This Issue:

  • TDI Proposes New Stat Codes for Recent Rate Rule Changes
  • Fannie Mae and Freddie Mac to Rein in Risky Mortgages
  • States of Housing: Does Texas Still Have the Edge?

TDI Proposes New Stat Codes for Recent Rate Rule Changes

TLTA | Dec. 6, 2019
The Texas Department of Insurance published a proposal to amend the Texas Title Insurance Statistical Plan via the addition of new stat codes for changes made to rules R-5 and R-8 when the new rate rule changes were adopted earlier this year.
 
TLTA has worked with TDI staff on the development of this proposal. We will review the proposed changes thoroughly, and participate in the hearing on your behalf. If you have any questions or concerns about the proposal, please let us know as soon as possible.
 
Comment Deadline
TDI will consider any written comments on the proposal that are received by TDI no later than 5:00 p.m. Central time on Jan. 6, 2020.
 
Comments are to be sent to [email protected]; or to the Office of the Chief Clerk, MC 112-2A, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104.
 
The Commissioner will also consider written and oral comments on the proposal at the public hearing.
 
Public Hearing Date and Location
A public hearing will take place at 10:30 a.m. central time on Dec. 19, 2019 in the Hobby Building in Austin. We would anticipate the hearing would be very brief.
 
If you have comments, concerns or questions, please call us at 512.472.6593 or email [email protected].
 

Fannie Mae and Freddie Mac to Rein in Risky Mortgages

FOXBusiness | Dec. 10, 2019
The federal agency in charge of Fannie Mae and Freddie Mac wants the mortgage giants to reduce their exposure to risky loans, intended to make homeownership more affordable, in order to be prepared for a possible economic downturn.

At the behest of the Federal Housing Finance Agency, the two companies are scaling back the proportion of loans they back to borrowers with small down payments and mortgages to deeply indebted borrowers, according to The Wall Street Journal, which first reported the news.

The FHFA did not immediately respond to FOX Business’ request for comment.
 
Reining in risk could limit their defaults and producer bigger profits, possibly helping the firms appeal to investors as the FHFA looks to take both companies public — something that will require billions of dollars in funding.
 
“Some of this really is a reflection of the increased emphasis and focus on: let’s do what we need to do to get out of conservatorship,” FHFA director Mark Calabria told the Journal.
 
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States of Housing: Does Texas Still Have the Edge?

Texas A&M Real Estate Center | Dec. 4, 2019
Texas fared better than most of the United States during and after the Great Recession (GR), thanks in part to its diverse economy (e.g., oil fracking and the technology sector) and stronger housing market fundamentals.

Elements that affect housing demand include demographics, income and employment growth, interest rates, and locational characteristics such as schools, work centers, and transportation. Supply fundamentals include building permits, housing starts, construction costs, and land costs. Two principal housing factors contributing to Texas' relative success after the GR were overall housing affordability and much less reliance on extreme subprime home financing during the housing boom.

Texas' favorable economic conditions attracted new residents who bought homes, supporting the housing market. In recent years, however, the nation's economy has improved, reducing the Lone Star State's attractiveness.

To evaluate how Texas measures up ten years after the GR, the Real Estate Center compared Texas' current housing market fundamentals to those of some fast-growing states (Arizona, Colorado, Washington, and Florida) and some with slower growth (California and New York).
 
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