First Time Homebuyers Finding It Tough

Tightening Mortgages Making It Difficult

Kiplinger reports that the first time homebuyers are having more difficulties with getting mortgages. They also report that Investors are giving some push back on stocks that lack key components.

First Timers

First Time Buyers Couple In Their New Home
First Time Buyers Couple In Their New Home

Many first-time home buyers will have a tougher time getting a mortgage. The Federal Housing Administration (FHA) is tightening its underwriting requirements for FHA-insured loans because the agency is worried that too many risky mortgages are being made. The move reverses a 2016 decision to loosen underwriting standards. Now lenders will have to do more time-consuming manual underwriting for the riskiest borrowers. About 83 percent of FHA loans go to first-time home buyers.

Lenders say they will see a reduction in their FHA business of up to 15 percent. Originations will shrink by about 5 percent to 15 percent. The impact will be felt in a few months.

Investor Push Back


Big investors are pushing back against shares with diluted voting rights. Dual-class shares give some stockholders, typically the firm’s founders and early investors, more voting power than others. Snap! Google and Facebook all went public with dual-class structures, giving the founders total control.

Investors have asked the Securities and Exchange Commission to take action and block shares with unequal voting rights. Last year, several asset managers and pension funds petitioned the New York Stock Exchange and NASDAQ to limit listings of such firms, saying they reduce the influence of investors.

Dual-class initial public offerings are still on the rise, especially in tech. WeWork, Airbnb, Slack Technologies and Uber are all mulling such public offerings.

Regulating Cryptocurrencies


Initial coin offerings are moving closer to having some federal rules. ICOs, similar to IPOs, are the process of raising funds for newly launched virtual currencies. While the SEC hasn’t issued specific rules on ICOs, it recently put out a framework to help issuers determine whether they’ll fall under federal securities law. The guidelines will help the industry avoid violations. The SEC has said most ICOs are securities.

ICOs aren’t dead, but they have declined substantially over the past year. Heightened regulatory scrutiny and a big drop in the value of cryptocurrencies such as bitcoin slowed down the market in the United States. A large source of funds: High-net-worth, accredited investors. Firms raised $1.2 billion through ICOs in 2018.

Contact us here at PTC Computer Solutions to help understand the retail market and business technology of today.  For more on the ever evolving Retail market and how to stay involved and relevant, contact us today.  We work hard to stay ahead of the cutting edge and can assist your projects in understanding where you should be putting your efforts.

David WB Parker is a principal of Parker Associates of Jacksonville, Florida, marketing consultants to the real estate industry; President of PTC Computer Solutions, IT Specialist, and an active real estate sales professional with Barclay’s Real Estate Group based in Jacksonville, FL.  He can be reached at 904-607-8763 or via email