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» VISIT US ONLINE @ DSNEWS.COM 5 A look at facts you didn't know you couldn't live without. Compiled by the DS News Staff Seeing Facebook friends experience rising home prices can increase the likelihood of renters deciding to buy a house themselves, according to research by New York University. A Redfin survey revealed that more millennials are saving up for down payments the old-fashioned way: taking a second job to save or borrowing cash from family members. THE CALL FOR MORTGAGE REFORM INSIDE THE JOURNAL // ON THE WEB // THE APP SPECTRUM // MOVERS & SHAKERS TAKE A LOOK INSIDE THE NUMBERS D A T A B I T S Source: Redfin, "Detroit, Indianapolis and Buffalo Among the Least Disaster-Prone and Most Affordable Places to Live" THE MOST DISASTER-PRONE METROS THE LEAST DISASTER-PRONE METROS 1 PROVIDENCE, RHODE ISLAND 2 DETROIT 3 HARTFORD, CONNECTICUT 4 LAS VEGAS 5 MILWAUKEE 6 INDIANAPOLIS 7 BUFFALO, NEW YORK 8 SALT LAKE CITY 9 RALEIGH, NORTH CAROLINA 10 NASHVILLE, TENNESSEE 1 WASHINGTON, D.C. 2 LOS ANGELES 3 RIVERSIDE, CALIFORNIA 4 NEW YORK 5 AUSTIN, TEXAS 6 HOUSTON 7 MINNEAPOLIS 8 NEW ORLEANS 9 PORTLAND, OREGON 10 DALLAS In his annual letter to shareholders, JPMorgan Chase CEO Jamie Dimon stated that the U.S. is in desperate need of mortgage reform. Dimon stated that reform would add to America's economic growth. "Reducing onerous and unnecessary origination and servicing requirements (there are 3,000 federal and state requirements today) and opening up the securitization markets for safe loans would dramatically improve the cost and availability of mortgages to consumers—particularly the young, the self-employed, and those with prior defaults," Dimon said. "And these would not be subprime mortgages but mortgages that we should be making," Dimon continued. "By taking this step, our economists believe that homeownership and economic growth would increase by up to 0.2% a year." According to Dimon, it was mortgage laws that led to the Great Recession in 2008, and today, bad mortgage laws are hindering economic growth. "Because there are so many regulators involved in crafting the new rules, coupled with political intervention that isn't always helpful, it is hard to achieve the much-needed mortgage reform," Dimon said. "is has become a critical issue and one reason why banks have been moving away from significant parts of the mortgage business. at business, in particular, highlights one of the flaws of our complicated capital allocation regime." Citing JPMorgan Chase's analysis, Dimon stressed the importance of mortgage reform. According to Dimon, over "$1 trillion in additional mortgage loans might have been made over a five-year period had we reformed our mortgage system." Dimon also noted the impact student loans have had on mortgages and household formation. "Irrational student lending, soaring college costs, and the burden of student loans have become a significant issue," Dimon said. "e impact of student debt is now affecting mortgage credit and household formation—a $1,000 increase in student debt reduces subsequent homeownership rates by 1.8%. Recent research shows that the burdens of student debt are now starting to affect the economy." PAGE 30 VP, Market Economics, Auction.com FIVE MINUTES WITH WITH Daren Blomquist RANKING METRO RANKING METRO "Reducing onerous and unnecessary origination and servicing requirements and opening up the securitization markets for safe loans would dramatically improve the cost and availability of mortgages to consumers— particularly the young, the self-employed, and those with prior defaults." —Jamie Dimon, CEO, JPMorgan Chase

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