news-record.com

Moving to a better neighborhood can enhance your family’s health, according to the results of a study by the Department of Housing and Urban Development. The study focused primarily on high-poverty neighborhoods versus better neighborhoods.

“This study proves that concentrated poverty is not only bad policy, it’s bad for your health,” said HUD Secretary Shaun Donovan. “Far too often, we can predict a family’s overall health, even their life expectancy, by knowing their zip code.

“But it’s not enough to simply move families into different neighborhoods. We must continue to look for innovative and strategic ways to connect families to the necessary supports they need to break the cycle of poverty that can quite literally make them sick.”

HUD’s study tested the long-term health impacts of approximately 4,500 low-income families living in public housing projects in high-poverty neighborhoods in Baltimore, Boston, Chicago, Los Angeles and New York.

“Where you live can be critical to your health,” said Secretary for Health and Human Services Kathleen Sebelius. “Families need quality housing and neighborhoods with clean air, safe places to play and exercise, and access to healthy and affordable foods to promote better health and wellness.”

The National Bureau of Economic Research conducted the study for HUD. The Elisabeth Allison Professor of Economics at Harvard University and NBER Research Associate, Lawrence Katz, was the principle investigator and the McCormick Foundation Professor of Social Service Administration, Law and Public Policy at the University of Chicago and NBER Research Associate Jens Ludwig, was the project director, it was noted in a HUD report.

How does the mortgage industry feel about the Home Affordable Refinance Program changes?

Recent changes have indeed been made to HARP. The changes are designed to help more underwater borrowers who are current on their mortgages refinance at today’s low interest rates.

Not only will these changes allow more borrowers to qualify, but they will also streamline the process and reduce the cost to borrowers. It should also lessen the risk for Fannie Mae and Freddie Mac.

“Lenders are particularly gratified that the refinements will provide relief from some representations and warranties that lenders face when originating new loans,” said David Stevens, president and CEO of the Mortgage Bankers Association. These changes alone should encourage lenders to more actively participate in HARP.

“Borrowers need to be aware that these changes will not be implemented overnight. Lenders likely won’t receive specific guidance and operational details from the regulators for a couple of weeks, after which it will take a bit of additional time for lenders to implement them.”

In a move that shows general acceptance of the new HARP changes, the industry’s four largest mortgage servicers say they will take part in the revamped Home Affordable Refinance Program. Bank of America, Chase, Citigroup and Wells Fargo have expressed their support of the program.

Government officials expect the program’s revisions to increase competition for refinancing, with an estimated 1 million homeowners to receive assistance under the new guidelines.

Why are rents rising while home prices drop?

While homeownership rates are falling, rental demand is rising, bringing rental rates up and apartment vacancies down. This increase in the multifamily housing sector is a positive signal for the housing industry, according to Freddie Mac’s chief economist Frank Nothaft.

“Improvement in the economics of apartment management has prompted an increase in structure values, property sales and new construction,” Nothaft said. He noted that many newly formed households are choosing to rent rather than own in the current, unstable economy.

To find out more about Jim Woodard, visit the Creators Syndicate website at www.creators.com.