The PIN Magazine June 2019

MAY 2019 Vol. 06 | Issue 5

Ensuring Equal Access to Shelter Act

The National Flood Insurance Program Eric L.Frazier MBA First Bank’s New Vice-President

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CONTRIBUTORS The Power Is Now Research Team

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CONTENTS

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magazine

12. Beatty Bipartisan Financial Literacy Bill Reintroduced in House 18. Ensuring Equal Access to Shelter Act 22. Making FHA More Affordable Act 26. Reviving the National Flood Insurance Program 30. Eric Lawrence Frazier MBA, First Bank’s Vice-President 34. The Affordable Housing Credit Improvement Act of 2019 38. The Homeownership for DREAMers Act

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FROM THE

EDITOR W

elcome to our mid-year issue of the Power Is Now Magazine. We are honored and we consider it a great privilege to serve each and everyone of you by providing quality issues of The Power Is Now magazine each month.

Our company’s goal is not just to provide you with timely real estate news and developments, but to also be your ally in the industry. The Power Is Now, Inc. stands for something, YOU! We uphold the value of the American Dream and we believe that for any person who is willing, homeownership is available and possible for those who are ready to embrace responsibilities and do the work to establish a secure future for their families.

Our ideology goes beyond the business of publishing for profit but empowering people with information that can change their lives. We believe that we have a responsibility to educate people and real estate professionals and the American public in making informed decision when it comes to home purchasing or real estate investment.

The Power Is Now will continue to be a sustainable enterprise to endow people for success in the real estate industry. As we reach halfway through 2019, let us look back and plan ahead. Looking back, this issue will focus on six legislation by the House Financial Services. I want to endorse and advocate for what the House, led by Congresswoman Maxine Waters is doing. We have seen a series of legislation brought forward and approved, in regards to Housing and Credit.

We begin by detailing a legislation by Beatty Bipartisan Financial literature bill which seeks to educate the public about the various channels by which they can get mortgage education. Being a mortgage and a real estate company, I feel this is something people want and need. We always live on Facebook as well as regularly publishing informational articles to make sure you are up to date with the what’s happening in the industry.

More than 5 decades ago, the FHA was passed into law. A bill that sought to protect against discriminatory practices in the housing industry. Even though discrimination still exists in subtle ways, the Making FHA More Affordable act is a bill that was intends to mirror out instances that make FHA loans less affordable to those who need it the most. Over the years, FHA loans have become less attractive as they carry an insurance on them, making them very expensive, this defeats

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The Power Is Now Magazine | June 2019

the true purpose for their establishment. We get into details of how this insurance is affecting the FHA loans as well as details about this act and how it aims to resolve this situation.

Reviving the National Flood Insurance Program is something that we have been following for quite some time now. Apparently, we are not alone, the House Financial services has been fighting a long battle to reinstate the program. Am happy to announce that Congresswoman Maxine Waters is on the vanguard of fighting for affordable NFIP premiums. In this issue, we tell you more about the NFIP, what it is and how you can benefit from.

Last but certainly not the least, Senator Bob Melendez led a section of colleagues in introducing the Homeownership for Dreamers Act. This Act clarifies that the Deferred Actions for Childhood Arrivals (DACA) recipients- also known as the dreamers – cannot be denied mortgage loans backed by the Federal Housing Administration, Fannie Mae, Freddie Mac, or the US Department of Agriculture because of their immigration status.

I am very confident and pleased to say that so far, everything seems to be working out for the minority groups in the country. Imagine the impact the bills will if passed.

Other than that, we are pleased by the collaborative efforts we are making. We have partnered with First Bank to make sure that you get the best mortgage programs. In addition, our staff has creatively researched and crafted the articles presented in this issue.

Please take a moment to read and share our current issue. Like on us on Facebook and Follow us on Twitter and let us continue to support each other in all our undertakings. Through all the challenges the real estate industry faces, we need to be flexible and adaptable in order to remain relevant and competitive. If there anything we can do to help improve our service, please email your concerns to eric.frazier@thepowerisnow.com.

It is with this note that I send you sunshine, warmth and summer fun for your entire family.

Remember “we are at our best and we maximize our success when we act now”. The Power Is Now!

Eric Lawrence Frazier, MBA CEO The Power Is Now Inc.

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Finding the perfect home for your clients can be hard.

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[POWER FINANCIAL]

BEATTY BIPARTISAN F FINANCIAL LITERACY BILL REINTRODUCED IN HOUSE

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rom the beginning of 2005, until the 2nd quarter of 2016, there has been a steady decline in homeownership rates bottoming out at 62.9%. higher home prices, increasing mortgage rates and the rise in millennial demographics many of who have been saddled with huge student loans debts, have been cited among the top three factors contributing to this decline.

Between Q2 2016 and Q1 2018, there have been signs of recovery where the national homeownership rates grew to 64.2%, which nationally is quite a significant increase. According to the U. S Census Bureau research, states with large urban centers or states with most of its population living in urban centers have lower homeownership rates more than the rural states. Lower median home prices correlate with higher rates of homeownership.

The Power Is Now Magazine | June 2019

The American Dream has for long been defined by homeownership, however, judging by the current developments and trends, this aspiration is wanting. The US seem to be undergoing a very diverse paradigm shift- the long-term shift from a society to a mix of homeowners and renters which I think most people have misunderstood. It’s not a change triggered by only rising home prices or a greater demand for urbanized living, but a transition from the old industrial economy, to a new, clustered and knowledge base economy. Understanding this will help influence how people now perceive housing and why homeowners are behaving the way they are.

While homeownership has declined over the last decade, the shift from owning a house to renting is much more dramatic in certain cities and this is what the US census bureau is trying to put across, that the most innovative and dynamic metropolitan areas have consistently shown low homeownership rates. Do people now prefer renting to owning a house? And what’s leading to change?

From 2000 to 2015, the homeownership rates in the US declined in 90 percent of all-American metro areas and in 96.2 percent of the large metros with over 1 million residents. Remember this period also covers the 2008 financial crisis and the steady decline in homeownership could be attributed to this. If we want to promote homeownership, even before getting to address home prices, it is important to first educate homebuyers, which is the first step in buying a home. I am thinking if millennials are well equipped with knowledge about buying a home, homeownership rates in the country will be on the rise. The problem we have is that most lenders are taking advantage of the buyers and

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they impose harsh policies on them for their gain. Weighing options before him a buyer is forced to rent.

Last month, U.S congresswoman Joyce Beatty reintroduced the Housing Financial Literacy of 2019 H.R 2162 which is a bill aimed at increasing first-time homebuyer’s financial literacy. If the House enact the bill, it would give the firsttime homebuyers who complete a Department of Housing and Urban Development (HUD) certified housing counselling course a discount on their Federal Housing Administration (FHA) mortgage insurance premiums of 25 basis points.

“Right now, too many Americans lack the basic knowledge and know-how to fully understand the long-term financial obligations and implications of purchasing a home,” Beatty said. “Motivating first-time homebuyers to seek vital pre-purchase counseling and equipping them with the much-needed financial skills and tools to make informed financial decisions benefits their families, the surrounding neighborhood, and entire U.S. economy—and that is precisely why the Housing Financial Literacy Act is so desperately needed.”

Personally, I think home buyer’s education is very important, not just for the first-time homebuyers, but for every buyer. Real estate

13

that 70 percent of Americans think so. Most Americans also don’t know that there’s help to streamline this process, an earlier 2013 study noted that that two-thirds of the Americans did not understand about the federal or state down payment assistance or related programs.

markets are always changing and so does the homebuyer’s environment. Financial literacy is the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being. Despite its importance, for many households, financial literacy is an issue most people would rather not confront. Money and wealth are topic addressed in a variety of ways for different cultures and it’s not surprising to find that there are no conversation about money or wealth or how to manage one’s income and financial assets. Ideally, parents are supposed to teach their children on how to manage money, or how to improve their economic well-being. As with most people, this step must have been skipped and therefore financial literacy becomes a personal initiative to learn.

Homeownership is one of the several ways, perhaps the most prominent ways of building wealth. However, owning a home requires financial preparation to build up savings and creditworthiness. Financial literacy is an important determinant of homeownership as it affects savings behavior, if parents are reluctant towards teaching children about financial literacy, it brings about difficulties for these children to make sound decisions including purchasing a home.

Studies confirm that homebuyers who receive pre-purchase housing counselling are nearly one-third less likely to fall behind on their mortgage, thus facing a reduced risk of foreclosure. Most people think home-buying process is overly complicated, in fact, a 2015 survey by NeighborWorks America showed

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“Motivating first-time homebuyers to seek vital pre-purchase counseling and equipping them with the much-needed financial skills and tools to make informed financial decisions benefits their families, the surrounding neighborhood, and our entire economy,” Beatty said. “I am pleased to see my bill move one step closer to becoming law and many thanks to my Democratic and Republican colleagues for their support.”

Works Cited “Beatty Bipartisan Financial Literacy Bill Reintroduced in House.” Congresswoman Joyce Beatty, 15 Apr. 2019. Accessed 27 June 2019.

Florida, Richard. “Why Homeownership Is Falling Across America.” CityLab, CityLab, 3 May 2018.

Accessed 27 June 2019.

Sillin, Nathaniel. “Homebuyer Education: The First Step to Buying a Home.” HuffPost, HuffPost, 22 June 2016. Accessed 27 June 2019.

“States with the Highest (and Lowest) Homeownership Rates | Lattice Publishing.”

Latticepublishing.Com, 2018. Accessed 27 June 2019.

“The Evidence on Homeownership Education and Counseling | HUD USER.” Huduser.Gov, 2015.

Accessed 27 June 2019.

“The Impact of Financial Literacy on Homeownership: Enhancing Financial Literacy Skills.”. Accessed 27 June 2019.

University Credit Union. “A Lender’s Advice to First-Time Home Buyers - University Credit Union.”

University Credit Union, 25 Mar. 2019. Accessed 27 June 2019.

The Power Is Now Magazine | June 2019

Picking the right horse is hard.

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Your clients can get pre-approved prior to contract, and then close in as little as 14 days‌ AND they get a $250 First Bank gift card after closing! At First Bank, you’ll experience exceptional service. We track the details of each loan and the market to ensure clients have the best mortgage product for their financial situation.

If you know anyone who is looking for personal and professional service, I would be grateful for the referral.

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*To participate in this expedited process, all applicable credit documentation must be provided at the time of loan application. Under the Purchase First Program, First Bank will be ready to close your loan within 14 days if we pre-approve you. If your loan takes longer to close than we guarantee due to a delay by First Bank, we will credit you at closing with $250.00 to be credited towards your closing costs. Program available on all applications received between March 1, 2017 and July 31, 2017 that close and fund

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First Bank Legacy For over four generations, First Bank has enjoyed a legacy of strength, agility, and long-term perspective.

Since 1910, we have remained dedicated to serving the communities in which we operate with an unwavering commitment.

This commitment began over 100 years ago in a small, rural community in St. Louis to help local clients reach their financial goals. And, although First Bank has grown to be one of the largest family-owned banks in the country, the steadfast commitment to serving our clients—and treating them like family—still remains the same.

From Main Street America to large-scale metropolitan areas, First Bank continues to be a vital part of the communities in which we serve. At First Bank, you’ll find the products and offerings typically only found with larger, publicly held financial institutions. Quite simply, we’re big enough to provide the products and services you need, but small enough to provide caring, personal service. At First Bank, our clients become part of the family.

1910

William Dierberg, Sr.,

President, Creve Coeur Farmer’s Bank

1945

William Dierberg, Jr.,

President, Creve Coeur Farmer’s Bank

1966

James Dierberg,

President, Creve Coeur Farmer’s Bank

2016

Michael Dierberg, Chairman, First Bank

1973 Creve Coeur Bank becomes First Missouri Bank

Missouri Bank 1986 First becomes First Bank

1974

First Acquisition: Hermann, MO

1995 First Bank expands into California

1983

Expansion into Illinois

century of treating 2010 Aclients like family

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Ensuring Equal Access to Shelter Act

T

hese are bizarre moments, and ever since Trump took over the oval office, he has been doing everything possible to make sure that immigrants do not breathe in peace. His dictatorship permeates every fabric of the institutions established with the sole purpose to protect ordinary Americans, and this means even the immigrants. Last month, Trump’s administration came under heavy fire from legislators when it announced plans to let shelters that are federally funded to consider sex and gender identity when deciding whether to let people in. The arguments over the proposal from the Department of Housing and Urban Development (HUD) sparked accusations of prejudice and contentious markup held by the House Financial Services Committee. the proposed rule would permit shelters that have facilities like bathrooms and sleeping areas separated by sex to establish a policy that will

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consider sex before allowing the person into the shelters. Critics argue that this separation will bring about gender discrimination, as it would turn transgenders away from these facilities leading to homelessness.

This move is the latest rollback by Trump’s administration of LGBT rights to allow discrimination based on sexual orientation and gender identity in public and private settings. The justice department has said that women in prison must be jailed with men and also argued that religious shopkeepers can refuse service to same-sex couples. It also defended the ban on transgender troops in the military. Trump released the conscience rule that lets health care providers recuse themselves from providing certain health services to transgender patients. Civil rights advocates have condemned Trumps

The Power Is Now Magazine | June 2019

administration for the proposal, which potentially has dire consequences for transgender people. According to a 2015 U.S. Transgender Survey, 30 percent of transgender people in their life have experienced homelessness, transgender people of color are over 3 times as likely as the total U.S. population to be living in poverty.

In its proposal summary, HUD defended the move saying that the rule would continue the agency’s “policy of ensuring that its programs are open to all eligible individuals and families regardless of sexual orientation or gender identity.” Shelters could consider factors such as privacy, safety, religious beliefs, practical concerns, any other relevant considerations under the civil rights and non-discriminatory authorities, the individual’s sex as reflected in official government documents, and the gender which a person identifies with in deciding whether a person should be admitted to a shelter.

In addition to that, the proposal would also allow shelter providers to consider their own beliefs when deciding whether to admit a person currently homeless. Defending itself before angry legislators, HUD blasted the 2016 Equal Access rule for offering “no flexibility for faith-based shelter providers with deeply held religious convictions.”

Note that in August, the department of labor published a directive allowing the Federal Contractors to fire or refuse to hire workers based on their sexual orientations. In January, the department of health and human services issued a South Carolina’s foster care program permission to turn away prospective parents with different religious beliefs, which is a direct blow to the LGBTQ parents and in March, the Pentagon announced the beginning of its plans to bar transgender people from serving in the military. So, this move shouldn’t come as a surprise, it’s clear that Trumps administration wants nothing to do with transgender people or

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people with a diverse religious belief.

“The proposed rule permits Shelter Providers to consider a range of factors in making such determinations, including privacy, safety, practical concerns, religious beliefs, any relevant considerations under civil rights and nondiscrimination authorities, the individual’s sex as reflected in official government documents, and the gender which a person identifies with,” says an abstract of the draft regulation.

The Obama administration approved two rules that protected the LGBT community who are homeless and rely on HUD services.

This includes a 2016 regulation titled “Equal Access in Accordance With an Individual’s Gender Identity in Community Planning and Development Programs.” HUD’s website explains that the Obama Era rule “ensures equal access to individuals in accordance with their gender identity in programs and shelter funded under programs administered by HUD’s Office of Community Planning and Development.”

America is a nation that most people around the world consider a haven and that’s what it is. A nation built to sustain what humankind has always fought for- freedom. Sexual orientation and religion are very sensitive matters and therefore, I believe that people should be free to express who they truly are with no fear of contradiction. What the government is doing is very wrong because denying a person shelter in the cold night is inhumane. The LGBT

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community has already suffered so much from the rejection that comes with it. Why would the government deny them the right to proper shelter? What Congresswoman Jennifer Wexton is right, stopping government’s harsh policies on the LGBTQ community, immigrants and people with different religious affiliations.

The fact is, these are not the only people affected by the rules and policies by the Trump Administration; minority groups are targeted as well.

The Ensuring Equal Access to Shelter Act is a bill proposed to block this rule by the HUD. “I asked Secretary Carson directly if he was expecting any changes to HUD’s Equal Access Rule, and he said no under oath,” said Congresswoman Jennifer Wexton. “This change will allow shelters and programs to discriminate against transgender people seeking access to housing.”

“This is a cruel attack on a vulnerable population.

Barring a community already subject to alarmingly high levels of violence and abuse from access to life-saving shelter is dangerous.

This administration’s relentless assault on the rights of LGBTQ Americans cannot continue.”

Wexton expressed fears that the LGBTQ community in America is under attack under the current administration. Just last month, HUD tabled a rule that would allow the federally funded shelters to deny people admission based on their religious affiliations, or to force women to share bathrooms and sleeping quarters with men.

“We will hold them accountable,” Wexton said.

“We are looking out for you and will make sure that you stay safe.”

Surely, the proposal by the HUD has spurred an outrage among the Democrats who have been very critical of the Trump’s government other efforts to roll back federal protections for transgender people. Sparking more anger is how the HUD secretary Ben Carson first addressed the plan alleging that he had lied to the Financial Services Committee during a May hearing.

A HUD spokesperson said in a statement 20

that the government should not influence shelter’s admission decisions. “The previous Administration issued a rule in 2016 mandating that single-sex or sex-segregated shelters admit individuals based solely on a person’s self-identification of sex. Under this 2016 rule, women’s shelters are required to admit biological males who self-identify as female, and men’s shelters must admit females who self-identify as male. It is HUD’s belief that shelters should be able to decide for themsel ves how to define sex consistent with state and local law.”

Equal access makes life simpler for the transgender community. A survey conducted in 2016 by the Center for American Progress and Equal Rights Center found that only 30 percent of shelters in Connecticut, Washington, Tennessee, and Virginia said that they would house a transgender woman with other women.

Even with access to shelters, transgender women are at the high-risk abuse category.

A 2015 survey found that 70 percent of transgender respondents who stayed in a shelter a year earlier reported some form of mistreatment. This comes on the heels after several cases of deadly violence have been reported touching the black transgender community. According to Human Rights Campaign, three black transgender women were shot dead in less than a week in May.

References Cbsnews.com. (2019). Homeless transgender Americans would lose protections under new HUD rule proposal.

Dol.gov. (2019).

Federal Register. (2019). Equal Access in Accordance With an Individual’s Gender Identity in Community Planning and Development Programs.

Lacy, A. and Lacy, A. (2019). South Carolina Is Lobbying to Allow Discrimination Against Jewish Parents. [online] The Intercept.

Lacy, A. and Lacy, A. (2019). Trump Administration Grants South Carolina Foster Care Agencies Authority to Discriminate Against Jewish and Muslim Families.

National Low Income Housing Coalition. (2019). House Committee to Vote on Bills to Block HUD’s Harmful “MixedStatus” and Equal-Access Proposals.

Reginfo.gov. (2019).

Representative Jennifer Wexton. (2019). Wexton Introduces Bill to Block HUD’s Proposed Rule Targeting Transgender People.

TheHill. (2019). Lawmakers battle over HUD protections for homeless transgender people.

The Power Is Now Magazine | June 2019

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Making FHA More Affordable Act I n 2013, FHA home loans became less attractive because they attracted mortgage insurance on them for the entire life of the loan. Unlike the private loans where private mortgage insurers are required to cancel the outstanding balance once the principal balance reaches 78 percent, FHA loans require the borrower to pay insurance premiums for the life of the loan. Many borrowers are stuck paying for the premiums for the life of the loan, which makes FHA loans expensive.

Many low-to-moderate income earners go to the FHA loans because they do not have access to a larger down payment, prior to this underwriting change, borrowers generally were required to pay mortgage insurance premiums until the loan amortized to 78% LTV. The change to FHA’s insurance policy came in an effort to improve the health of its flagship insurance fund where FHA needed $1.7 billion bailouts. FHA increased its annual

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mortgage insurance premium for most of the new mortgages by 10 basis points. Premiums on Jumbo mortgages - $625,000 or larger also increased by 5 basis points, to a maximum authorized annual mortgage insurance premium.

In 2001, FHA canceled required MIP on loans when the outstanding principal balance equaled 78 percent of the original principal balance, however, FHA would remain responsible for insuring 100% of the remaining balance throughout the life of the loan, a term which in most cases extended beyond the cessation of the MIP payments.

From 2010 all through to 2012, the MMI Fund had foregone billions of dollars in premium revenue on the FHA loans endorsed, mainly because of the automatic cancellation policy.

Therefore, to avoid further loss, FHA Risk Management and Regulatory Affairs reported that it would start collecting premiums based on the unpaid principal balance for the entire life of the loan.

The Power Is Now Magazine | June 2019

“These are essential and appropriate measures to manage and protect FHA’s single-family insurance programs,” said Commissioner Carol Galante.

She added, “In addition to protecting the MMI Fund, these changes will encourage the return of private capital to the housing market, and make sure FHA remains a vital source of affordable and sustainable mortgage financing for future generations of American homebuyers.”

In 2017, Representative Maxine Waters authored a bill that received overwhelming support from real estate and mortgage companies. Soon as the bill hit the floor house, it was evident that changes to the “oppressive” FHA law were something that was long awaited in the housing business. The Bill was entitled Making FHA More Affordable Act and would repeal the life of the loan requirement and reinstate FHA’s previous policy that required borrowers to pay mortgage insurance premiums until the outstanding principal balances reach 78 percent.

Since 2013, the MMI Fund is on a better footing and there was no need for the MIP, thus prompting bold actions such as those taken by Rep. Waters.

“Families who take out home loans through the Federal Housing Administration should not be unnecessarily burdened with mortgage insurance premiums for the life of the loan,” Waters said in a statement. “My bill would remove this unfair requirement for FHA borrowers and help to make mortgages more affordable for hardworking Americans.”

“Returning to a more reasonable FHA premium policy is the right move now that home prices and mortgage markets have stabilized and the FHA’s financial position is strong,” Ethan Handelman, acting CEO of the National Housing Conference, said. “It helps homeowners build wealth and save for the future, so they’ll be better prepared for the next economic downturn.”

This shows that this bill received overwhelming support from ma jority real estate and trade groups and people who ran to FHA loans to secure homes. I support fully the austerity of this bill which is quite straightforward and has no shred of confusion surrounding it. however, the bill didn’t go too far. The contention Rep. Maxine was putting forward was that the private mortgage insurers only required PMI until LTV fell to 78 percent. As such MIP on FHA loans made them extremely expensive.

Which is true, because, in essence, FHA loans are geared towards low-and moderate-income borrowers. if you do the math, of course, you will see some borrowers can still wind up in a favorable position going for the FHA loans as compared to the Conventional loans and so, that argument had no influential powers.

Additionally, there was the issue to do with the FHA-to-Conventional Refinance, and assuming the borrower qualifies for a refinance, this becomes a relative way to drop the MIP, however, Rep Waters argued that refinance

“Low and moderate-income homebuyers often look to FHA, but policies like the ‘life of loan’ mortgage insurance make it harder for those creditworthy buyers to close the deal,” William Brown, president of the National Association of Realtors, said.

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comes at a cost and the mortgage interest rates are dynamic and may change against the borrower.

Although this bill made a lot of sense, it didn’t pass. Fast forward to 2019, another bill – the H.R 3141, “The FHA Loan Affordability Act of 2019” introduced by Rep. Dean Phillips, D-MN surfaced which is very identical to Making FHA more Affordable Act of 2017. I think The Democrats are trying to show how unrelenting they are towards making sure that there’s equality.

The reason for enacting changes to provide for the MIP was funded the MMI Fund, which is now above water, in fact, with a reported gain of $44 billion since 2012. So, I think it is high time that the government gives FHA borrowers a break.

It doesn’t make sense to continue charging premiums on a loan that’s meant to be cheap for low-income earners. I totally agree with the Community Home Lenders Association, that FHA’s current policy is discriminatory against borrowers.

“The FHA Life of Loan policy is unfair to FHA borrowers because it significantly overcharges them,” the estimated additional cost as a result of the MIP is $15,000 which is very high. “This is a significant impediment to asset building, and results in total premiums that are wildly disproportionate to the risk a loan poses to FHA,”

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“The Life of Loan factor can tilt a borrower to a refinance out of FHA and into a conventional loan, even when the savings are limited and the traditional wisdom about refinancing calculations argue against a refinance,” the group wrote. “The result is that FHA loses many seasoned loans, along with the revenue that goes with those loans.”

The bill passed out of the committee by a vote of 34 to 25, it moves next to the House Floor.

Works Cited “Bill Proposes Repeal of Life-of-Loan Insurance Premiums for FHA Loans - National Association of Real Estate Brokers.” National Association of Real Estate Brokers, Nov. 2017.

“Chart: FHA Annual Mortgage Insurance Premiums (MIP) for 2019 – FHAHandbook.Com.” Fhahandbook.

Com, 2019.

“Congress Prioritizes Housing Programs in 2018 Funding Bill, Rejects Trump Administration Proposals.”

Center on Budget and Policy Priorities, 20 July 2018.

“Does FHA Require PMI (Mortgage Insurance) for All Borrowers? – The HBI Blog.” Homebuyinginstitute.

Com, 2018.

Guerin, Jessica. “House Committee Passes Bill to Make FHA Loans Less Expensive.” Housingwire.Com, HousingWire, 13 June 2019.

Lane, Ben. “Bill Introduced to Eliminate FHA Life of Loan Insurance Premium.” Housingwire.Com, HousingWire, 26 Oct. 2017.

Mlynski, Christina. “FHA Raises Mortgage Insurance, for Life of Loan.” Housingwire.Com, HousingWire, 30 Jan. 2013.

The Power Is Now Magazine | June 2019

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[POWER MORTGAGE]

REVIVING THE NATIONAL FLOOD INSURANCE PROGRAM B

ack in 2017, the Federal Emergency Management Agency (FEMA) announced that it had acquired more than $1 billion in reinsurance to cover the National Flood Insurance Program (NFIP) all through the end of 2017, and since September 2017, lawmakers have been trying to pass legislation and short term extensions to the NFIP, which covers more than 5.1 million flood policies throughout the country. The NFIP provides crucial assistance to the victims of a disaster. On December 2018, legislators made their move again by voting to keep the program afloat.

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As the House Financial Services committee members prepare for a much-anticipated long term authorization of the NFIP, Congresswoman Maxine Waters said that she is focusing on the affordability of the NFIP premiums. “I am truly hopeful that as Chairwoman of the Financial Services Committee, with jurisdiction over the NFIP, that I will be able to work with Ranking Member Patrick McHenry on providing certainty to the market; enacting a long-term reauthorization that includes much-needed reforms to address affordability, improve mapping, enhance mitigation; and ensuring that policyholders are

The Power Is Now Magazine | June 2019

protected. First and foremost, I am focused on affordability.

Although premium increases were slowed with the passage of the Homeowner Flood Insurance Affordability Act, there is still much room for improvement. Policyholders continue to be burdened with unfair fees and surcharges that have nothing to do with their actuarial risk. For example, small businesses are charged $250 every year just to participate in the NFIP. I hope that any legislation we pass out of the House repeals these harmful surcharges, which unfairly burden policyholders and are not tied to actuarial risk.” Rep. Maxine Waters in a statement released on 5 June 2019.

The NFIP is adopting an approach that would rate flood risk, called the Risk Rating 2.0, this has been adopted by many businesses in the private market for years and what it normally does is that it accurately captures an individual property’s true risk of flood and price that risk more appropriately. However, Ms. Waters is concerned with the initiative saying that while the changes to the premiums changes to the underwriting process have the potential to significantly lower costs for some of the policyholders, it could substantially raise rates for others.

NFIP is critical to ensuring access to flood insurance coverage all across the country.

However, NFIP is much more than just a flood insurance program, it helps a lot in disaster awareness and preparedness and resiliency by providing flood maps, setting standards for floodplain management and investing in mitigation for homes, businesses, and infrastructure. Everyone is at risk of flood and therefore, we need to be concerned with the NFIP. In a statement released earlier this year, it is evidently clear that Congresswoman Waters is fighting for the long-term re-authorization of this program because as it stands, it could save millions of business and people.

“I have long advocated for a long-term reauthorization of the NFIP in order to provide

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certainty in the housing market. Unfortunately, the NFIP has been carried along through ten short-term extensions since Fiscal Year 2017 and has even experienced brief lapses during that time. This haphazard approach to legislating puts communities at risk and undermines the health of our housing market. The NFIP’s authorization is currently set to expire on May 31, 2019, and I believe that we will break this cycle.

I intend to work in a bipartisan manner, with the Ranking Member, Mr. McHenry, to provide a long-term reauthorization to restore stability and confidence in the market. Mr. McHenry, I certainly look forward to our work together.”

While speaking at the National Flood Conference in Washington D.C., Waters expressed her biggest concerns were deeply engrained in her previous experience with the Biggert-Waters Flood Insurance Reform Act of 2012. “I don’t usually have many opportunities to work with my Republican colleagues, but flood insurance has long been an issue that defies partisanship. As you all know, in 2012 I joined former Congresswoman Judy Biggert in sponsoring the NFIP renewal legislation that came to be known as ‘Biggert-Waters’ – a fiveyear reauthorization that focused on putting the NFIP on a path to fiscal sustainability.”

“Changes to risk rating must be undertaken with extreme caution and should always be done with the policyholder in mind,” Ms. Waters said.

“I will oppose any efforts to substantially raise premiums or to otherwise add to the affordability burdens that we in Congress are working so hard to tackle.”

The inability of the Congress to adopt a longterm reauthorization of the program, which has experienced 12 short term extensions as well as lapses before being retroactively being authorized. However, Waters expressed her hope that legislators would work on a bipartisan basis on a long-term overhaul of the program. This would include improved flooding mapping and enhanced mitigation activities.

Over the years, Ms. Waters has repeatedly called the progress to forgive the program’s $20 billion debt, noting that the NFIP pays $400 million every year in debt to the U.S. Treasury

27

to service the debt it cannot repay. “I was so pleased that Congress recently forgave $16 billion in debt with strong bipartisan support. But we did not wipe the slate entirely clean and the debt continues to burden responsible policyholders for the catastrophic losses of Hurricane Katrina and Superstorm Sandy.

The NFIP pays $400 million every single year just in interest alone to service a debt it can never repay. That $400 million could instead be spent on the affordability demonstration I just mentioned or repurposed to provide mitigation assistance or pay claims.

It is simply unacceptable that the very policyholders who are trying to do the right thing but are struggling to make the payments are paying for the servicing of a debt that was accrued at no fault of their own. I will not rest until something is done to address this $20 billion debt and the impact it has on policyholders.”

Other than reauthorization of the NFIP, I think we need to first educate people on the ground by providing them with necessary resources to conduct

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mitigation and floodplain management, and just like Ms. Waters puts it, we are all under the risk of flooding, therefore, preparedness is crucial.

There also needs to be improved mapping with additional funding and use of the latest technology.

“According to the Federal Emergency Management Agency, everyone is at risk of flooding,” she said.

“It is important that flood maps are up to date and modernized so that flood risks are understood and accurately displayed.”

Works Cited Pociask, Steve. “It’s Time for Congress to Reform the Flood Insurance Program – InsideSources.” InsideSources, Feb. 2019.

“Reinsurance Funding Revives the NFIP.” Preciseleads.Com, 2017.

“Rep. Waters Expresses Concerns about NFIP Risk Rating Changes - Business Insurance.” Business Insurance, 2019.

WARMBRODT, ZACHARY. “FEMA Revives Flood Insurance Sales after Backlash.” POLITICO, 28 Dec. 2018.

“Waters Outlines Flood Insurance Reform Priorities; Calls for Congress to Put Partisanship Aside.” Financial Services Committee, 5 June 2019, financialservices.

The Power Is Now Magazine | June 2019

The best home improvement is the kind your house pays for. Let’s get to work.

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ERIC L. FRAZIER

F

rom obtaining his MBA from the university of Redlands to becoming the president and CEO of one of the most prestigious and successful real estate firms in California, Eric Lawrence Frazier can be said to be a man of magical touch, everything he touches and everywhere he goes surely must be successful.

This can be seen in the many hats that Eric wears such as, CEO, Radio Host, editor-in-chief, real estate broker, sales extraordinaire, director of the California Association of Real Estate Brokers, the President of Orange County Realtist of the National Association of Real Estate Brokers and a past of the African American Association of REO brokers.

This reflects a man who wants nothing more than to do all he can with the time he is given.

Educational Background Eric graduated from the Redland University with an MBA focused in Finance and BS in Business Administration and Management.

This education helped Eric pave way for Eric to venture into the world of business starting and managing his own real estate company, as well as other managerial roles in mortgage loan operation.

Career After graduating from the University, Eric followed his dreams of being a reputable and impactful entrepreneur.

His career includes 26 years of active

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managerial roles in sales, and marketing.

Eric has also served at the Washington Mutual where he successfully revitalized his market area through marketing and increased loan production. As a result, mortgage lending grew from $4 million monthly in loan volume to a high of $95 million a month in 2006. In 2005, Eric achieved a new milestone in funding over $1.14 billion in new mortgage volume, and averaged $1 billion a year in production from 2003 to 2007.

Previously, Eric successfully managed 15 home mortgage consultants, 7 home mortgage assistants, and 3 customers service representatives for the North Orange County Markets Wells Fargo Home Mortgage Centers. His base of operation was the La Habra Home Loan Center.

Prior to joining Wells Fargo in 2005, Eric enjoyed a successful 11-year career in mortgage banking with the Washington Mutual Homes Loans as the Vice President and Senior home loan center manager.

Currently, apart from the active management of the Power Is Now Media, Inc. Eric is also the Vice President and Mortgage Advisor at First Bank. His base of operation is Corona. He also serves the entire state of California and the nation online.

At First Bank, Eric specializes in residential 1 to 4-unit real estate

31

purchase and refinance transactions of all types and work with real estate professionals to provide in person and online lending support and consultation.

Professional Affiliations Mr. Frazier holds a California Real Estate Broker’s license. He is also a member of the Asian Business Association of Orange County and a Former Member of the Board of Directors of Diamond Bar Chamber of Commerce.

Eric is also a member of the Brea Chamber of Commerce, the Anaheim Chamber of Commerce, the Black Chamber of Commerce in Orange County, the Pacific West Realtors Association of Realtors, the Tri County Board of Realtors, the National Association of Hispanic Real Estate Professionals, the California Association of Realtors (CAR), the National Association of Realtors, 100 Black Men of Orange County and the Chairman of the Board of directors for the California African American Museum.

Achievements President of Power Is Now, Inc. Perhaps one of the most profound achievement is the establishment of the Power Is Now

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Company, a multimedia company involved in various thing although under the broad spectrum of real estate and mortgage. The Power Is Now provides educational materials and resources for both the consumers and real estate professionals. the company also provides in depth research on emerging issues and trends in real estate to afford investors a fair return on their investment.

Editor-In-chief of the PIN Magazine Fueled by the passion for publication to support real estate professionals, Eric started publishing The PIN Magazine; an online real estate magazine that has been in circulation since September 2013.

President of The Power Is Now Leadership Academy As a Leader, there is no better way to prove leadership skills as well as contribute his own quota to the society other than establishing his own leadership academy, a non-profit corporation created to support and develop young men and women in leadership in mortgage and real estate industry. The academy serves as a pillar of support and training ground for youths interested in achieving leadership potentials in real estate.

The academy is involved in various community initiate centered on job training and education.

The Power Is Now Magazine | June 2019

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The Affordable Housing Credit

Improvement Act of 2019 D

espite a low unemployment record in the country, housing affordability will continue pushing millions of Americans to the edge, according to a monthly report from the National Association of Realtors. So, buyers should expect a strict market, limited inventory and high prices. “Affordability will continue declining in 2019,” said George Ratiu, director of quantitative and commercial research at NAR, as “prices and interest rates are expected to increase.” By all means and in every measure, the American housing sector has fallen and I think this a problem that started long ago culminating to what the state is experiencing today- decades of tolerating, city, state and federal policies that fueled the rising rents, falling subsidies, and a systematic change in homeownership from too few, well-endowed

34

older whiter men.

That’s indeed the upshot from a report by the Joint Center for Housing Studies at Harvard University. The report indicates that despite the short-term progress since the recession, long term prognosis is something we can only continue hoping for. A shortage of housing inventory, low labor supply for construction projects and high land costs are some of the factors cited to fuel the housing crisis in the state. The peak for housing affordability was reached in 2012 when 78% of new and existing homes sales were affordable for a typical family based on incomes and current interest rates. By the 3rd quarter of 2018, sales had plummeted reaching 56 percent of the affordable home sales. Of course, the continual rise in home prices and mortgage rates has led to monthly The Power Is Now Magazine | June 2019

made borrowing money more expensive in 2018,” Ratiu said. Regionally, housing affordability continues to hit the west worst, with an index of 105.3, but the Midwest is better of (index at 185). A survey by Apartment List found that young millennials in San Francisco will have to save for 20 years to buy a condo.

There’s a huge problem in the housing market, a ticking time bomb. The worsening affordability has already corrupted the US housing market and unless the state takes affirmative actions, I think we are headed for troubled times.

mortgage principal and interest rate payments rise more quickly than family income, completely perplexing buyers’ affordability.

The National Association for Realtors affordability index fell to 146.9 in October from 162.7 a year earlier. (NAR’s Affordability Index measures whether the median-income family earns enough to qualify for a mortgage loan on a median-priced house). “The main reason for the decline is the one-two punch of rising home prices and increasing interest rates, which have www.thepinmagazine.com

Given the magnitude of the problem, I applaud the actions taken by some legislators who are really working hard to make sure that housing affordability becomes a reality.

It’s really important that we think of a constructive way to move ahead because housing affordability for renters and buyers is becoming a nightmare in almost every city in the country.

A bipartisan group of the Senate and House Legislators have proposed a bill that will help solve the housing affordability issue in the country. The Affordability Housing Credit Improvement Act of 2019 is a bill that seeks to close the gap therein between affordable rental units all across the country. The bill was proposed by the U.S Senator Maria Cantwell (D-WA) and the U.S. Representative Suzan DelBene (WA-01) in an attempt to increase the

investment in affordable housing and to provide more resources and stronger protection for the at-risk groups.

“It doesn’t matter whether you’re in Spokane or Walla Walla, whether you’re in Yakima or Vancouver, we have a housing crisis in the state of Washington,” said Senator Cantwell in a speech on the Senate floor today. “We know that this challenge of moving forward on affordable housing is something that is a bipartisan issue. The tax credit has had bipartisan support for many years in the United States Congress. We just need to put the petal to the metal and provide more of the tax credit so we can get more affordable housing built in the United States of America.”

The bill aims to strengthen the Affordable Housing Tax Credit also known as the Low-Income Housing Tax Credit. The LIHTC probably is the nation’s largest housing development program and has a substantial influence on where low-income families are able to live. Strengthening the program will empower the production of more units of affordable housing and better serve a number of underserved communities. The LIHTC program in the past has been improved severally but despite that, it still falls short of meeting its potential to help poor families move to better communities with low crime rates, better schools – generally, better life. If the bill pushes through and is passed, the Cantwell-DelBene

35

bill would help put up over 9700 housing units in Washington in over ten years, in addition to the hundreds on units built each year through the program. In addition to creating more housing units, the bill will also create more than 11,000 jobs and add to the economy over $1 billion in wages and business income. Basically, the bill expects to create 1.9 million additional affordable housing units over the next ten years.

The Affordable Housing Tax Credit was created over 30 years ago and offers the developer generous tax breaks if the new developments include affordable units. The program has been used to put up more than 3.2 million housing units, leveraging more than $190 billion in private investments. In the recent past, Washington just like many other states have experienced a severe housing affordability crisis, with the median income increasing 3 percent between 2006 and 2015, the median rent in the same period increased by 18 percent. This means that more than $450,000 households spend more than 30 percent on

36

rent. Nearly 220,000 of these households spend more than half of their incomes on rent.

That applies to medium income earners, now imagine the case for the low-income earners, you’d be surprised. Statistics are more drastic for this group of people; 71 percent pay more than half or more of their monthly rent on income. This is happening almost in all states.

Strengthening policies that encourage the placement of the LIHTC developments in highopportunity neighborhoods as well as instituting channels that ensure developments are more affordable and accessible to families around and below the poverty line is a sure way to beat this menace in the country, which is exactly what this bill tables. The Affordable Housing Credit Improvement Act of 2019 will stimulate construction by increasing the amount of credit used in the development of affordable housing units by 50 percent, which over the next decade will create 384,000 more homes. In addition, the Act also aims to stabilize the value of tax credit at 4 percent eliminating uncertainty for The Power Is Now Magazine | June 2019

developers manipulating construction costs and other subsidies. The Act also allows the “recycling of multifamily housing bonds”, which basically is a financing mechanism that allows for the reuse of the tax-exempt bonds, which would create 100,000 additional units.

In addition to changing how we view and tax credit and expanding the financial support for affordable housing construction, the Act also aims at changing how we use the tax credit. Current mechanisms have a low sifting potential and if altered in who and where it would be used would specifically target the at-risk populations, including the low-income earner, low-income students, and veterans making it easier to use credit for developmental projects in rural and Native American communities.

“We are millions of units short of affordable housing and the result is that nearly half of all renters spend more than 30 percent of their income on rent,” said David M. Dworkin, the National Housing Conference’s president, and CEO, in a statement. “This legislation is an important step towards closing the housing supply gap, but there’s much more to do.”

I think the odds on this bill are so good.

Honestly, this country needs more bills like this if we need better and affordable housing units.

Development projects across the counties have stalled, housing inventory is running short, houses have become pricier. What we need to solve this issue is building and add more housing units to the market. That’s the only way we will truly solve this crisis. If a bill comes with a solution, I don’t see the reason why it shouldn’t pass. Trust me, we need such bills and if we do not take caution, we might end up losing more people to the streets. Senator Cantwell believes that this issue will suffice and cut across the aisle and hopefully create a pact that will see the passing of this bill.

“We know that this challenge of moving forward on affordable housing is something that is a bipartisan issue,” the Senator said.

“The [Affordable Housing] tax credit has had bipartisan support for many years in the United States Congress. We just need to put the pedal to

the metal and provide more of the tax credit so we can get more affordable housing built in the United States of America.”

Works Cited “Affordable Housing Credit Improvement Act Introduced in Senate & House - NH&RA.” NH&RA, 26 June 2019. Accessed 27 June 2019.

Brinklow, Adam. “San Francisco Millennials Won’t Be Able to Buy a Home for 20 Years.” Curbed SF, Curbed SF, 13 Dec. 2018. Accessed 27 June 2019.

---. “San Francisco Millennials Won’t Be Able to Buy a Home for 20 Years.” Curbed SF, Curbed SF, 13 Dec. 2018.

“Cantwell, DelBene, Bipartisan Colleagues Introduce New Legislation to Combat Affordable Housing Crisis | U.S. Senator Maria Cantwell of Washington.” Senate.Gov, 4 June 2019. Accessed 27 June 2019.

“Congress Urged to Enact Housing Credit Bills in 2019.”

Leadingage.Org, 2019. Accessed 27 June 2019.

“February 2019 Housing Affordability Index.” Accessed 27 June 2019.

Hobbes, Michael. “America’s Housing Crisis Is A Ticking Time Bomb.” HuffPost Canada, HuffPost Canada, 19 June 2018. Accessed 27 June 2019.

Joint. “The State of the Nation’s Housing 2018 | Joint Center for Housing Studies of Harvard University.” Harvard.

Edu, 6 June 2018. Accessed 27 June 2019.

“LIHTC Admissions, Rents, and Grievance Procedures | NHLP.” NHLP, 29 June 2018. Accessed 27 June 2019.

“Low-Income Housing Tax Credit Could Do More to Expand Opportunity for Poor Families.” Center on Budget and Policy Priorities, 19 Sept. 2018. Accessed 27 June 2019.

“Low-Income Housing Tax Credits | NHLP.” NHLP, 2017.

Accessed 27 June 2019.

“NCSHA Statement on the Affordable Housing Credit Improvement Act of 2019 — NCSHA.” NCSHA, 2019.

Accessed 27 June 2019.

“No Place Like Home: America’s Housing Crisis and Its Impact on Business.” HBS Working Knowledge, 20 Mar. 2000. Accessed 27 June 2019.

“PNRC NAHRO | Senators Reintroduce the Bipartisan Affordable Housing Credit Improvement Act.” Pnrcnahro.

Org, 2019. Accessed 27 June 2019.

Richardson, Brenda. “America’s Housing Affordability Crisis Only Getting Worse.” Forbes, 31 Jan. 2019. Accessed 27 June 2019.

Sisson, Patrick. “Affordable Housing: New Federal Bill Aims to Add 1.9M Units Nationwide.” Curbed, Curbed, 5 June 2019. Accessed 27 June 2019.

Wong, Venessa. “Housing Affordability Is Expected To Worsen In 2019, Says National Association Of Realtors.”

BuzzFeed News, BuzzFeed News, 14 Dec. 2018. Accessed 27 June 2019.

Your loan officer should be as invested in your home as you are.

Let’s feather your nest.

First Bank Mortgage offers three tips to help you on the path to homeownership!

1. Start by checking your credit score.

Your credit history is an important factor when you decide to apply for a loan. The score reflects how well you manage your debt. It’s important to discuss this, and other factors, with your First Bank home loan consultant.

If you find that your credit score is too low, there are a number of steps you can take to improve your credit score.

2. Get organized.

Getting a loan requires a few different documentations including, but not limited to, pay stubs, tax returns, and financial statements. You’ll also need to provide copies of additional monthly payments such as car loans, credit cards, and student loans. Keep all of this in mind, when you begin organizing. If you have this information readily available when you decide to apply for a home loan, it will make the process much more efficient.

3. Start Saving!

Set up a designated savings account and start saving as much as you can each pay period to use as a down payment on the purchase of your new home. Although we offer first-time homebuyer programs with little to no down payment, it is still a good idea to have some available funds in reserve to use for a potential down payment, utilities, moving expenses, new home furnishings, or unforeseen emergencies.

With some preparation now, you’ll be even closer to rolling out the welcome mat on your own, new home later.

We’re here to help answer any questions to help make that dream a reality.

104 E Ontario Ave Corona, CA 92879 FirstBanks.com/Mortgage NMLS 551928

Eric Lawrence Frazier MBA Vice President & Mortgage Advisor Office: (714) 475-8629 Fax: (314) 264-0211 NMLS: # 461807 eric.frazier@fbol.com Firstbanks.com

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The Homeownership for DREAMers Act

U

.S senator Bob Melendez led a section of colleagues in introducing the homeownership for Dreamers Act, which clarifies that the Deferred Actions for Childhood Arrivals (DACA) recipientsalso known as the dreamers – cannot be denied mortgage loans backed by the Federal Housing Administration, Fannie Mae, Freddie Mac, or the US Department of Agriculture because of their immigration status. A week earlier, Congressman Juan Vargas (D-Calif.) introduced a similar bill in the House of Representatives; H.R. 3154 which passed in the House Financial Services.

The Homeownership for Dreamers Act would mean that the federal housing agencies and the governmentsponsored corporations like Freddie Mac and Fannie Mae would not be allowed to refuse assistance for loans for the young recipients of DACA. “We cannot allow mortgage lenders to continue to discriminate against Dreamers. Like any other young person contributing to our country, Dreamers deserve the opportunity to own a home,” said Rep. Juan Vargas. “I would like to thank Chairwoman Maxine Waters for her support of the

40

Homeownership for Dreamers Act and the Committee on Financial Services’ unwavering commitment to our immigrant families and communities of color. I look forward to the House’s consideration of my bill.”

The bill clarifies the eligibility status of certain mortgages with Federal credit enhancement may not be conditioned on the status of the mortgagor as a DACA beneficiary if all other eligibility criteria are satisfied. “It’s clear that this Administration, hamstrung by federal rulings that have prevented the mass deportation of DACA recipients, is now actively weaponizing the Department of Housing and Urban Development to carry out its bigoted anti-immigrant agenda,” said Menendez in a statement to BuzzFeed News.

deny FHA-backed mortgages to Dreamers who worked so hard to secure protected status under DACA and who continue to contribute so much to the country they call home,” said Sen. Menendez. “It’s clear that this Administration, hamstrung by federal rulings that have prevented the mass

Federal Housing Administration is part of the HUD and apparently, it has been advising lenders not to approve government-backed loans for the DACA recipients since last year, according to several lenders, industry associations and young immigrants hoping to buy their first home.

“There is no legitimate reason for the Trump Administration to

The Power Is Now Magazine | June 2019

deportation of DACA recipients, is now actively weaponizing the Department of Housing and Urban Development to carry out its bigoted anti-immigrant agenda. The Homeownership for Dreamers Act will prohibit for the federal government from discriminating against DACA recipients when applying for government-backed mortgage loans and in doing so ensure DACA recipients can continue to pursue the American dream of homeownership.”

HUD wrote a letter to Rep. Pete Aguilar (D. Calif) stating that the DACA recipients are ineligible for the FHA loans, which is a reversal from a previous statement and testimony. The letter comes months after there had been reported cases that HUD instituted a new unofficial policy in which they instructed lenders to deny

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mortgage for DACA recipients. After the 2018 report, Sen. Melendez and Sen. Booker sent letters to the HUD demanding for answers as to why the HUD had reported changes in its policy, HUD responded that the department had not “implemented any policy changes...with respect to FHA eligibility requirements for DACA recipients” “Discriminating against Dreamers is an affront to the values we hold dear in America. These young people, who came to the United States as kids and call this country home, should not be barred from buying a home and pursuing the American dream. This legislation would prevent the Trump Administration from punishing DREAMers and denying them the opportunity to become homeowners,” Sen. Booker said.

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support affirmative legislation that helps people without hurting people, like Senator Menendez’s Homeownership for Dreamers Act that calls for an end to this discriminatory practice and reaffirms what it means to live free and without fear.”

A study of the DACA recipients beneficiaries showed many positive contributions to the economy, including 14 percent of the respondents able to purchase their first home after receiving the DACA protections and among the respondents 25 years and older, this share increased to 20 percent. In March, Fannie Mae released a policy clarifying that it does not turn away DACA recipients for housing loans based on their immigration status. Some of the lenders see this as a strong mechanism for the case of the DACA recipients to have access to the FHA backed loans because the FHA and Fannie Mae have a similar criterion for their loans.

The Homeownership Dreamers Act is supported by the following organizations; UnidosUS, United We Dream, National Fair Housing Alliance, Asian Real Estate Association of America (AREAA), National Association of Hispanic Real Estate Professionals (NAHREP), Mortgage Bankers, National Association for the Advancement of Colored People (NAACP), Leadership Conference on Civil and Human Rights, Center for Responsible Lending American Friends Service Committee Immigrant Rights Program in New Jersey, and Make the Road NJ. “It was not enough for Trump when he killed DACA, which protected over 800,000 immigrant youth from deportation and allowed us to work and pursue educational opportunities. Now he’s come after our ability to purchase a home, put a roof over the heads of our families and to establish a foundation for our future,” said Bruna Bouhid-Sollod, DACA recipient and United We Dream Senior Communications Manager. “This is why immigrant youth of United We Dream

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Sen. Melendez was on the vanguard for the deportation relief for the DREAM Acteligible youths, leading to President’s Obama historic DACA, 7 years ago. Since the current administration ended the DACA, several lawsuits have been filed against the administration for unlawful termination of the program. Three nationwide injunctions issued by US district courts- New York, California and District of Columbia- have allowed people who have previously had the DACA to renew their deferred action.

“Homeownership is a cornerstone of the American dream; it is unacceptable that this administration has been unjustly denying FHA loans to DACA recipients because of their status.

This administration has time and time again found ways to punish DACA recipients and close the door on them from the opportunities they deserve. The Homeownership for DREAMers Act will ensure that DACA recipients are not discriminated against when pursuing their dream of buying a home and continuing to build their future in this country,” said Itzel Hernandez, DACA recipient and Immigrant Rights Organizer with the American Friends Service Committee Immigrant Rights Program in New Jersey.

The battle is still not over yet, there are still existing threats to the program as there are still active legal cases and court rulings in the next months will determine the fate of the program.

Works Cited “Menendez Leads Colleagues in Introducing Legislation to Guarantee Dreamers Access to Home Loans | U.S. Senator Bob Menendez of New Jersey.” Senate.Gov, 20 June 2019.

Accessed 29 June 2019.

Prakash, Nidhi. “Democrats Push To Protect Home Loans For DACA Recipients.” BuzzFeed News, BuzzFeed News, 20 June 2019. Accessed 29 June 2019.

“Rep. Juan Vargas’ Homeownership for Dreamers Act Passes Out of House Financial Services Committee.”

Congressman Juan Vargas, 24 June 2019. Accessed 29 June 2019.

The Power Is Now Magazine | June 2019

HOME OWNERSHIP

By Eric Lawrence Frazier MBA

Home ownership brings stability to individuals and families who have never had a dwelling place that they could call their own. There is something special about owning real estate that is unlike anything else on earth you can own.

Real Estate you own is not like cars that decay over time and you have to replace them.

Real Estate you own is not like clothes that go out of style and you have to buy new ones.

Real Estate you own is not like expensive vacations or experiences that only last a moment in time.

Real Estate you own is not like an apartment where the landlord may increase the rent until it’s no longer affordable.

Real Estate you own is not like staying at your parents house where you know can’t stay forever.

Home ownership is the beginning of wealth that increases over time and becomes your estate & legacy Home ownership is the pride of a mother nurturer and the kitchen her domain Home ownership is the pride of a father provider and protector of his territory and family.

Home ownership is the foundation of permanence and the place where life happens, birthdays celebrated, deaths mourned.

Home ownership is the place you build memories that can never be taken from you.

Memories etched in walls and concrete, experienced in rooms and floors, Memories living in trees and shrubs planted by your hand.

Howe ownership is the manifestation of you - your style, your colors, your smell, your stuff, your junk, your memories, your yard and your spaces, your life.

It’s the height markers on your first child’s bedroom wall.

It’s the hearts drawn in the concrete slabs when you pour your patio floor It’s the birthday parties, and anniversaries in the living room and kitchen.

It’s the back yard barbecue with friends, neighbors and family contentions it’s the high school and college graduation, and wedding receptions Its’ the family nights and block parties and the fellowship of family connections Home ownership It’s more than real estate. Land, brick and mortar, wood frame construction and chicken wire.

It’s more than money saved, gifts recieved and grants obtained It’s more than the debt you incur to buy it.

It’s more than the payments you make to own it.

It’s more than the appreciation that comes with keeping it over time.

It’s memories, it’s family, and it’s life that can happen in one place Until you say it’s time to move.