Message Heard Through Housing Forum – Banks Still Want to Lend

 On June 2^nd the Atlanta Regional Commission hosted its quarterly Regional Housing Forum, which focused on the availability of mortgage products in the metro area, and what affect this is having on stabilizing metro neighborhoods. Moderated by Bill Bolling of the Atlanta Community Food Bank, June’s forum was attended by more than 100 people and featured the following panelists discussing the issue of single-family mortgage availability for metro neighborhoods: Catherine “Candy” Lasher, Fannie Mae; Brigitte Killings, Bank of America; Jeanne Goldie, Wells Fargo; Debra Robinson, FHA.

Throughout the conversation, a common theme described by both panelists and attendees was the difficulty and complexity of the situation. All agreed that mending the damage done by the foreclosure crisis is a complex problem, and credit availability will indisputably be a part of the solution. And while it may appear to many that lending has virtually slowed to a snail’s pace, panelists were adamant that loans were being made, including loans to low and moderate income borrowers.

Atlanta Regional Housing Forum to Focus on the Role of Single Family Mortgage Finance in Stabilizing Metro Neighborhoods

Successful recovery in Metro neighborhoods struggling with foreclosures and vacant homes is widely dependent on the availability of single-family mortgage financing. But the current credit market – tightening credit standards, higher mortgage insurance cost, and limited purchase/rehab loan products – is leaving many prospective buyers on the sidelines. 

Many neighborhoods in return are seeing increased investor activity. And while all investors are not irresponsible, some investor activity is being dominated by cash-purchases and investor owners who are renting these properties in poor conditions, or keeping them unoccupied and boarded up with intentions of flipping them later when values return.

Financing products and policies are needed to ensure that these struggling neighborhoods are not overrun by absentee landlords and vacant blighted homes.