2016 New Year's Resolution: Affordable Housing
January 22, 2016
When establishing New Year’s resolutions, most financial institutions focus on two major aspects: future investments and money saving strategies. A good way to understand the factors that prevented you from achieving your financial goals in the past is to analyze previous performance reports. But analyzing business data won’t allow you to identify the best investment opportunities for 2016.
At Triad Financial Services, our knowledgeable and experienced financial advisers are ready to offer you a safe, high-yield investment solution you can confidently add to your loan portfolio. According to our experts, financing alternatives for affordable housing is one of the new goals that should be on your New Year’s resolution list.
New Year’s Resolution: Affordable Housing and Community Development
Speaking at the Annual Economic Summit last year, FHFA Director Melvin Watt announced that housing finance became one of “the most critical economic issues” and an important FHFA objective for the next few years. Although the primary purpose of the FHFA is to oversee and regulate government-sponsored enterprises (Fannie Mae and Freddie Mac), it also has a statutory duty to ensure liquidity in the housing finance market and provide access to financing options for lower wealth communities.
In meeting its obligations, the FHFA has issued a proposed rule and extended two of its programs (the Home Affordable Modification Program and the Home Affordable Refinance Program), which aim to support the financing of affordable housing, ease the ongoing home loan crisis and offer more finance options that low- and moderate-income borrowers have the ability to repay.
In a market in which the demand for affordable housing is already overwhelming government capacity, new, innovative home lending solutions are needed more than ever. However, the current housing and lending policies deprive many people of the right to safe, adequate housing, forcing them to live in substandard housing and unsafe neighborhoods, travel long distances to work, drop out of school due to lack of education opportunities in the area, and so on. All these will have a boomerang effect, ultimately placing a greater burden on all of us and negatively affecting the social, economic and financial landscape.
Making available financing options for low-income housing, such as manufactured home loans, from a high number of lenders and credit unions, on the other hand, will allow more people to buy decent housing in safe neighborhoods with good schools. As expected, this will have a positive impact not only on the social, economic and financial sectors but also on the bottom line of all those who offer affordable financing options.
Over the past few years, manufactured home lending has received a quite surprising amount of attention. But since manufactured homes are an important part of the affordable housing market, the time has come to find new, more sustainable ways to provide financing options for this sector.
At Triad Financial Services, our manufactured home lending solutions focus on two key concepts: standardization and flexibility. Offering specialized and standardized lending programs along with the flexibility that applies to traditional mortgages will result in more streamlined manufactured home financing options for low- and moderate-income communities and greater return on investment for investors.
Improved manufactured home financing and refinancing solutions from a higher number of sources will stabilize the secondary manufactured housing market, which is vital not only for the millions of people looking for a way to fulfill their home ownership dreams but also for the financial institutions looking for new products to enhance their loan portfolios.
If you’re looking for an innovative financial product to add to your loan portfolio, we invite you to contact us at Triad Financial Services. Combining expert consulting services with a comprehensive selection of manufactured home financing solutions, our professionals are ready to open a new door to financial stability and security for you and your clients or members.