The Affordable Housing Mortgage Issue
Thursday, June 30, 2011
9 a.m. - noon EDT
Trenton, NJ, United States
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In New Jersey, municipalities have a constitutional obligation to provide affordable housing, so many municipalities have affordable homes for sale. What we have come up against in this mortgage crunch is a new problem, where we have homes for sale that buyers are not able to obtain mortgages for, so we have empty affordable units and frustrated buyers and administrators of affordable housing programs. This panel discussion will focus on the issues that affordable housing buyers are having obtaining mortgages. FHA, the primary lender for low and moderate income buyers, is no longer lending when there is New Jersey affordable housing deed restriction on the property. Some banks are creating portfolios of these loans through CRA requirements, but they are few and far between. We need to get information about the current situation out to the planners and administrators behind these programs so they know how to advise homebuyers, and get some of these affordable homes that are on the market sold to qualified households. The panelists will include a Director from the New Jersey Housing and Mortgage Finance Agency who will discuss the current state of the market and the FHA denial, members of banks that are making these loans to discuss what they are looking for in order to underwrite them, and an administrative agent of affordable housing who will discuss what municipalities with money in their Affordable Housing Trust Funds can do to assist eligible buyers secure mortgages. This panel will hopefully provide guidance where at the moment there are only questions.