Hispanic Real Estate Professionals Attack Investor-favored Policies | Bedford Corners NY Real Estate

Last week the National Association of Hispanic Real Estate Professionals called on lawmakers in Congress and government officials to reverse investor-favored policies that have created an imbalance in housing inventory and unfavorable conditions for Hispanics and other first-time homebuyers.

Executives of NAHREP specifically cited Fannie Mae and Freddie Mac REO to Rental programs that eliminate affordable housing stock from the market and fuel an unfair race between owner-occupant buyers and investors. The programs, they say, create large investor-controlled housing markets and undermine the economic stimulus and recovery owner-occupant buyers can bring to the U.S. economy.

In 2012, investors purchased 50 percent of all homes selling for $250,000 or less, with the majority of these transactions driven through bulk sales, auctions and drop-bid trustee sales, according to NAHREP leaders. The net effect of the trend will turn owner-occupant neighborhoods into renter communities.

“Wall Street wins again! Hundreds of thousands of residential properties are being purchased by large investors through channels that are unavailable to owner-occupant buyers,” said Juan Martinez, NAHREP President. “With new housing construction still at a low and buyer demand on the rise, these programs have eliminated housing stock from the owner-occupant market at a time when first-time homebuyers can buy affordable housing at low interest rates.”

More than 90 percent of all foreclosed homes in the Phoenix area in 2012 were sold to investors when agents in the market report having 10 fully qualified buyers for every home listed in the market by an agent, say Hispanic real estate leaders. NAHREP agents report similar trends in other markets like Las Vegas, Miami, Sacramento, Los Angeles and the Inland Empire (east of LA).

“Failure to provide home buying opportunities to some of the most important growth segments of our nation – such as the Latino community – not only jeopardizes economic growth for our nation, it compromises the long-term financial stability of a generation,” said Martinez.

As part of its call to action to policy makers, Hispanic real estate leaders also recommend balanced mortgage credit rules that do not restrict access to credit, changes that support the health and solvency of the FHA fund and sensible immigration reform that preserves the nation’s labor pool and provides a route to citizenship for undocumented individuals and their children.