The King of Real Estate is about to become President of the United States. The Matrix – a Phoenix, Arizona real estate investing academy, goes into detail about what a Trump Presidency means. President Elect Trump is a real estate developer by occupation, it is the belief of the Matrix that his presidency will positively effect the real estate markets. His administration is pro-business that will create employment opportunities and stimulate consumer spending. By getting rid of many of the cumbersome regulations that are crippling real estate investors from obtaining financing and executing quicker deals, a Trump Administration should be good for real estate investors.
Soon-to-be President Trump is expected to take aim at the Dodd-Frank financial regulatory law. He made plain his dislike for Dodd-Frank during his campaign and now it appears that his administration will move fast toward changing it. Dodd-Frank was made law during the aftermath of the 2008-09 real estate meltdown and great recession to address concerns that the country’s largest banks and investment houses were supposedly “too big to fail. The Trump transition team was recently quoted as saying the law failed because “big banks got bigger while community financial institutions have disappeared at a rate of one per day, and taxpayers remain on the hook for bailing out financial firms deemed ‘too big to fail.'”
“The housing market is still being restrained by limited availability of home loans to many potential home buyers; once the Trump Administration corrects that, we should see a surge in home buying.” said the Matrix COO – Catherine Bell.
The effect of speculative and questionable lending preceding the housing bubble bursting was very clear: nearly eight million homes across the nation went into foreclosure. The response was new lending rules under the Dodd-Frank financial reform law, and the result was a property loan and credit lock-down that continues to this day. Some of the more speculative loan products, such as negative amortization property loans, are now banned. Borrowers must document their employment and debt levels. Lenders must disclose all the costs associated with every loan and verify a borrower’s ability to repay the loan.
Matrix CEO Daniel Scott said, “For home buyers who have excellent credit, Dodd-Frank made it a much bigger pain in the rear end to acquire a mortgage. You’ve got to fill out reams of paperwork, you’ve got to dig up years of tax returns, you’ve got to disclose information related to your retirement accounts; information that was never needed before. If you have less-than-perfect-credit, Dodd-Frank has made it nearly impossible to get that mortgage.”
One of the biggest impacts a Trump Presidency can have on the housing market is a refocus on FHA loans. FHA loans are one of the federal government’s most powerful tools for increasing home ownership. The mortgage insurance premium for the life of the home mortgage under FHA can be a block for some borrowers. If President Trump removes that premium, there will be increased access to home ownership and sales volume in the market.
Other targets of a Trump Presidency could be the Consumer Financial Protection Bureau, a Dodd-Frank creation that imposed new regulations on mortgage-servicing and the so-called “Volcker rule”, named after former Federal Reserve Chairman – Paul Volker, which restricts banks from making some kinds speculative investments that might boost profits but not benefit customers.
“The removal of any one of the Dodd-Frank restrictions would be a boon to the real estate market and property investing, but the eliminating of multiple restrictions, or even all of Dodd-Frank, would have a profound positive effect upon the ability of both investors and buyers to raise capital and execute deals,” said Daniel Scott.
According to the Matrix, the long-term forecast is that the United States is positioned for a very rosy picture for real estate investing. President Trump’s commitment to eliminate the overly stringent barriers to real estate buying and selling, following the 2008 housing crash, will certainly help keep real estate market, and investing in it, moving forward at a significant growth pace.
Matrix CEO, Daniel Scott says, “Haven’t you ever thought that you wished that somebody had told you about buying Apple, or Google, stock early on? Me? I would tell everybody to ‘Get in NOW’ in real estate. Here at the Matrix, what with our support and mentoring of members, this might be a ‘perfect confluence of events, situations and resources’ for people to make a killing in real estate.”
About the Matrix: The Matrix Investor Network is different from other real estate investor education programs. This program offers true mentoring and the support needed, with access to a powerful Network of others, to actually do successful real estate deals right after training. The Matrix is at: 2406 S 24th Street, Phoenix, AZ 85034. Call: (602) 559-9445. Request more information online: HERE.