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This Week in Washington

HUD housing survey finds renters not prepared for disasters

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This Week in Washington
Monday, September 10, 2018

Renters are three times more likely to need financial assistance to evacuate during a major disaster than those who own their own homes.

That’s according to the new 2017 American Housing Survey released by the U.S. Department of Housing and Urban Development (HUD), the U.S. Census Bureau, and the Federal Emergency Management Agency (FEMA).

September is National Preparedness Month, an opportunity to remind Americans to prepare their families for when disaster strikes. This National Preparedness Month will focus on planning, with the central theme: Disasters Happen. Prepare Now. Learn How.  

 “We welcome our partnership with HUD and this new data from the American Housing Survey. This report underscores the need to prepare for the hazards we may face at any time,” FEMA’s Deputy Administrator for Resilience, Dr. Daniel Kaniewski, said in a news release. “During National Preparedness Month, FEMA is encouraging individuals, families, and communities to start preparing. People with an emergency plan in place, a little emergency savings in the bank, and the right insurance coverage will bounce back much quicker following a disaster.”

The survey finds that of the nearly 44 million American renter households, approximately 39 percent indicated they do not have access to $2,000 to cover evacuation expenses.  Meanwhile, only 12 percent of 77.3 million owner households reported they did not have access to $2,000 to pay for their family’s evacuation. 

Each year, HUD and the Census Bureau produce the American Housing Survey (AHS), the most comprehensive analysis of the nation’s housing inventory. The AHS covers a variety of “core” housing topics, including the composition and quality of the nation's housing inventory, mortgages and other housing costs, and neighborhood conditions.

For the second time in five years, HUD and FEMA teamed up to add questions related to households’ disaster preparedness.  The questions cover several aspects of disaster preparedness.

For instance, more than 13 million households responded “yes” when asked whether they would need help evacuating pets.  When households were asked to name their first source of emergency information during a disaster, a nearly equal number of households said “television” (37.9 million) and “internet” (37.4 million).

 The 2017 American Housing Survey includes questions that allow researchers to track changes in key disaster preparedness measures compared to 2013.  For example, approximately 4.4 million more households indicated they had an emergency evacuation kit in 2017 compared to 2013.

 “In collaboration with FEMA, we have added disaster preparedness questions to this survey to better understand the challenges that households face as they prepare for and respond to disasters,” HUD Deputy Secretary Pamela Hughes said in the release.

Other national findings among the 121.2 million occupied housing units surveyed include:

Disaster Preparedness

About 81.3 percent of households report they have enough non-perishable food for at least three days, although only 58.6 percent report they have at least three gallons, or 24 bottles, of water per person.

Of the 88.0 million households with two-or-more persons, 36.5 percent reported they have an agreed-upon meeting location in the event of an evacuation and 26.4 percent reported they have a communication plan if cell service is disrupted.

About 80.7 percent of all households reported they would have access to vital financial information in the event of a disaster.

More than 77.3 million households indicated that if they were evacuated for two or more weeks, the most likely place they would stay would be with relatives or friends. About 27.9 million households said the most likely places they would stay is a hotel or motel.

Housing Quality

More than 15 million households, or 12.6 percent of all households, reported seeing signs of cockroaches in their home in the last 12 months. A much larger share of renters (17.9 percent) than owners (9.6 percent) reported seeing cockroaches.

About 3.8 million households, or 3.1 percent of all households, reported signs of mold in their home in the last 12 months.  Renters (4.7 percent) are more than twice as likely as owners (2.2 percent) to report signs of mold.

Housing Costs

More than half (50.8 percent) of renter households spend 30 percent or more of their income on housing costs.

The median rent was $850 per month while the median mortgage cost was $900. The median total cost of utilities was $202. The median cost for electricity was $106 per month and the median cost of water was $50 per month.

Owner Home Improvement

In a typical year, owners spent a median of $500 on routine maintenance or regular maintenance activities necessary for the preventive care of the structure, property and equipment. Such activities included painting, fixing leaks, repairing fences, cleaning gutters and removing dangerous trees.

There were 43.8 million households that performed 113 million home improvement projects, other than routine maintenance, in the last two years, spending more than $449.4 billion, with a median of $1,350 per job.

Of the owner-occupied units completing home improvement projects, about 30.8 percent did at least one project for energy efficiency purposes; 6.7 percent did at least one project to improve accessibility for an elderly person or a person with a disability, and 3.8 percent did at least one project to prepare the home for sale.

Neighborhood Characteristics

About 16.4 percent of households report their neighborhood has a lot of petty crime. Renters (23.5 percent) were almost twice as likely as owners (12.3 percent) to report their neighborhood has a lot of petty crime.

About 7.6 percent of households report their neighborhood is at high risk for flood or other disasters.

Of the 64.1 million occupied housing units in subdivisions (including apartments and groups of mobile homes), 14.4 percent are located in secured communities with walls or fences, comprising 7.6 percent of all occupied units.

Today's other top stories
Borrower claims several servicers violated RESPA concerning her loan modification
Housing Affordability Act would raise FHA loan limit
House committee votes to slash CFPB funding
HUD provides $1.8M to support housing for those aging out of foster care
Mortgage credit availability plateaus


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12 USC Section 2605 or Section 6 is titled Servicing of mortgage loans and administration of escrow accounts. It pertains to qualified written requests, notices of transfer of servicing and the administration of escrow accounts.
An arrangement that involves a person who is in a position to refer business as part of a real estate settlement service and who has an interest in a settlement services provider.

In the arrangement, the person, who has either an affiliate relationship with or a direct or beneficial ownership interest of more than one percent in a settlement services provider, directly or indirectly refers business to that provider or influences a consumer to select that provider.
An arrangement that involves a person who is in a position to refer business as part of a real estate settlement service and who has an interest in a settlement services provider.

In the arrangement, the person, who has either an affiliate relationship with or a direct or beneficial ownership interest of more than one percent in a settlement services provider, directly or indirectly refers business to that provider or influences a consumer to select that provider.
A mortgage disclosure that lists all estimated charges and fees associated with your loan. In addition to fees and charges, it will list your loan amount, mortgage rate, loan term and estimated monthly payment. Your escrows due at closing for insurance and taxes will also be outlined. Mortgage lenders are legally required to provide a GFE within three days of receiving your application.
A mortgage disclosure that lists all estimated charges and fees associated with your loan. In addition to fees and charges, it will list your loan amount, mortgage rate, loan term and estimated monthly payment. Your escrows due at closing for insurance and taxes will also be outlined. Mortgage lenders are legally required to provide a GFE within three days of receiving your application.
Under RESPA Section 2605(e)(1)(B), a qualified written request is a written correspondence that includes: 1) the name and account of the borrower, or has enough information to allow the servicer identify that information; and 2) a statement of the reasons for the belief of the borrower that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.

A QWR cannot be written on a payment coupon or other payment medium supplied by the servicer.
Under RESPA Section 2605(e)(1)(B), a qualified written request is a written correspondence that includes: 1) the name and account of the borrower, or has enough information to allow the servicer identify that information; and 2) a statement of the reasons for the belief of the borrower that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.

A QWR cannot be written on a payment coupon or other payment medium supplied by the servicer.
12 USC Section 2609 or Section 10 is titled Limitation on requirement of advance deposits in escrow accounts. It governs escrow accounts including notifications and statements to borrowers. Section 10 also sets out penalties for those who violate the section.
RESPA Section 3 provides that a thing of value includes any payment, advance, funds, loan, service or other consideration

Regulation X says thing of value includes: monies, things, discounts, salaries, commissions, fees, duplicate payments of a charge, stock, dividends, distributions of partnership profits, franchise royalties, credits representing monies that may be paid at a future date, the opportunity to participate in a money-making program, retained or increased earnings, increased equity in a parent or subsidiary entity, special bank deposits or accounts, special or unusual banking terms, services of all types at special or free rates, sales or rentals at special prices or rates, lease or rental payments based in whole or in part on the amount of business referred, trips and payment of another person’s expenses or reduction in credit against an existing obligation.
A form used by a settlement or closing agent itemizing all charges imposed on a borrower and seller in a real estate transaction. This form represents the closing transaction and provides each party with a complete list of incoming and outgoing funds. RESPA requires the HUD-1 to be used as the standard real estate settlement form in all transactions in the U.S. involving federally related mortgage loans.
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