2010: The US Housing, Mortgage and Commercial Real Estate Markets
Rosen is chair of the Fisher Center for Real Estate and Urban Economics at the University of California, Berkeley’s Haas School of Business. The FCIC is a bi-partisan, 10-member panel established by Congress to examine the causes of the financial crisis. Rosen presented the commission with several policy and reform proposals to combat the crisis.
“The embryonic recovery in housing has been highly dependent on massive federal government intervention rather than an organic increase in buyer demand,” said Rosen. However, he notes the termination of several federal programs will stunt the market’s recovery. His recommendations included:
• A loan modification plan to address “underwater” mortgages when a home’s value is well below the mortgage balance
• A shared appreciation second mortgage that allocates part of the future appreciation of the home to the government and to the private lender to encourage loan modification
• A government-sponsored “unemployment bridge loan” to address unemployed households who do not qualify for a loan modification
On the commercial real estate front, Rosen said vacancy rates and falling rents continue to dominate the market. He proposed:
• Maximum loan to values set “counter-cyclically” to minimize the number of borrowers becoming overextended at the market’s peak.
• Construction and development loans restricted to 50% of costs to ensure developers have a greater financial stake in their projects
• The amendment or repeal of the Foreign Investment in Real Property Tax Act (FIRPTA) in order to attract much needed capital to the domestic real estate market
Read Kenneth Rosen’s entire assessment and proposal of the 2010 real estate market: http://www.haas.berkeley.edu/news/20100113_rosenfcic.html
Media Contact
All latest news from the category: Business and Finance
This area provides up-to-date and interesting developments from the world of business, economics and finance.
A wealth of information is available on topics ranging from stock markets, consumer climate, labor market policies, bond markets, foreign trade and interest rate trends to stock exchange news and economic forecasts.
Newest articles
Machine learning algorithm reveals long-theorized glass phase in crystal
Scientists have found evidence of an elusive, glassy phase of matter that emerges when a crystal’s perfect internal pattern is disrupted. X-ray technology and machine learning converge to shed light…
Mapping plant functional diversity from space
HKU ecologists revolutionize ecosystem monitoring with novel field-satellite integration. An international team of researchers, led by Professor Jin WU from the School of Biological Sciences at The University of Hong…
Inverters with constant full load capability
…enable an increase in the performance of electric drives. Overheating components significantly limit the performance of drivetrains in electric vehicles. Inverters in particular are subject to a high thermal load,…