Demand Propels Home Prices Upward 2 days ago How Americans Feel About Mortgage Debt debt Millennials Mortgage Debt 2020-02-06 Mike Albanese Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Market Studies, News Print This Post Share Save Home / Daily Dose / How Americans Feel About Mortgage Debt Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Mike Albanese is a reporter for DS News and MReport. He is a University of Alabama graduate with a degree in journalism and a minor in communications. He has worked for publications—both print and online—covering numerous beats. A Connecticut native, Albanese currently resides in Lewisville. February 6, 2020 1,114 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago About Author: Mike Albanese A new survey by LendingTree found that almost 60% of Americans feel burdened by debt in 2020, with 12.4% most concerned about mortgage debt. The report states that even though mortgage debt is the largest source of debt, people feel less burdened by it, as that type of debt is considered a “good debt” as it contributes to consumers’ financial future. Fourteen-percent of all millennials surveyed is concerned over mortgage debt—the highest among the three generations polled. Thirteen-percent of Gen X’s surveyed were concerned about mortgage debt and just 10% of Baby Boomers were worried. Credit card debt was the leading source of worry among those polled at 36.7%. Baby Boomers had the most concern over this segment at 44%. Twenty-nine percent of millennials were concerned about credit card debt. A report by LearnBonds in January found that mortgage debt hit a new record of $15.8 trillion in Q3 2019. This is the highest amount since the 2008 economic crisis when it stood at $14.7 trillion. The home mortgage sector rates showed a steady decline in recent years to hit a low of $13.3 trillion in the third quarter of 2013, and from the 2013 Q3, the debt has increased in a steady trajectory to hit the latest figures recorded in 2019. From the data, there was $401 billion in newly originated mortgage debt in 2018 Q4.“Generally, the mortgage is among the largest component of household debt across the United States,” LearnBonds notes. “However, the mortgage rates have been low since the last quarter of 2018. The Federal Reserve Bank resorted to lowering the rates in the wake of trade uncertainty which affected the global economic growth.”Additionally, debt-to-income (DTI) ratios are on the decline, loan-to-value (LTV) ratios are on the rise, and average credit scores for conventional conforming home loans ticked up as of Q3 2019, according to data from CoreLogic.The average DTI for conventional conforming loans was 36% for Q3 2019, down one point from a year earlier. CoreLogic noted that this shift may be a result of a “relaxing of affordability pressures” as mortgage rates eased in 2019. Subscribe The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles Tagged with: debt Millennials Mortgage Debt The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: Where Underwater Homes are Concentrated Next: Foreclosure Auctions Indicate Strong Housing Market
“If you just look at the regulations and guidance you could think we’re behind when in fact, in lots of ways, LGPS funds and pools are way ahead in terms of responsible investment,” Houston told IPE. Luke Hall, local government minister as of late July 2019According to Houston, statutory guidance issued in 2017 by the department responsible for the LGPS requires local authority funds in England and Wales to include in their investment strategy statement an explanation of their policy on environmental, social and corporate governance (ESG) considerations. However, there is no specific requirement to include a policy statement on how risks associated specifically with climate change are taken into account in investment decision-making.The DWP’s amended investment regulations specifically mention climate change as an environmental consideration that could be financially material to investors. The Pensions Regulator’s guidance for defined contribution (DC) schemes is more explicit, stating that trustees need to understand the implication of “the systemic risk of climate change” on investment decisions.In addition to coming up with recommendations to present to the local government minister, the SAB also intends to provide the funds in the LGPS with its own guidance on responsible investment in the autumn.“That will set out the existing regulatory and overriding duties on local authorities when they’re making investment decisions to take into account things like ESG – how much they have to take into account, how much they have to report,” said Houston.The guidance is intended as a resource for individuals such as a newly elected councillor becoming a member of the pensions committee. The aim is to help decision-makers understand what their legal obligations are and what type of investment practices they can adopt with regard to ESG considerations, while continuing to meet these duties. The advisory board for the UK’s local government pension scheme (LGPS) intends to recommend that statutory guidance for the scheme be modified to reflect the government’s policy on climate change and wider responsible investment considerations.According to Jeff Houston, secretary to the scheme advisory board (SAB), the board plans to come up with proposed amendments to the guidance over the coming months and to present them to the new local government minister for consideration.Robert Jenrick replaced James Brokenshire as the secretary of state for housing, communities and local government upon Boris Johnson becoming the UK’s new prime minister on 24 July, and Luke Hall was appointed minister for local government and homelessness, replacing Rishi Sunak. The SAB’s plan comes after the Department for Work and Pensions (DWP) adopted regulations that introduced new responsible investment-related requirements for trustees of most private sector occupational pension schemes.