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34 FANNIE MAE EYES SUSTAINABLE HOUSING PRACTICES A good chunk of Americans cannot afford to live in areas near better schools and childcare, according to a poll conducted by Fannie Mae. According to the survey, 46% of American adults said they would prefer to live in a community with access to better schools and/or childcare, but cannot afford to do so; while 58% say communities with better job opportunities are too expensive for them to live in. "When families live in stable and affordable homes in a sustainable community, they have greater opportunities to prosper in other aspects of life, including educational and economic advancement," said Maria Evans, VP of Sustainable Communities, Fannie Mae. "When nearly 6 in 10 Americans have to sacrifice economic opportunities and nearly half have to sacrifice quality education and childcare because of housing affordability, it's clear we need to bring new ideas to the marketplace." "e affordability, quality, and location of where one lives has substantial implications for outcomes in education and economic mobility," Evans said. "rough the Sustainable Communities Initiative, Fannie Mae aims not only to create stability through housing but also to catalyze opportunities in education and forge pathways to economic mobility." To address these housing affordability concerns, Fannie Mae announced a Call for Ideas to identify innovative solutions. is is part of Fannie Mae's Sustainable Communities Innovation Challenge (e Challenge) a two-year, $10 million commitment by Fannie Mae to find promising solutions that address the nation's shortage of affordable housing through partnerships in sectors adjacent to housing. "We recognize the value in breaking down silos to work with new partners on issues that are inextricably linked to affordable housing in order to create comprehensive solutions," Evans said. "We are fostering sustainable communities by incubating innovative ideas that directly address our mission to bring affordability and stability to underserved areas and help ensure those residents have access to healthy, affordable, safe places to call home." WHERE REO VOLUMES ARE HEADED A recent report by ClearCapital lists the top 10 and bottom 10 metros by forecast growth through June 2019, featuring REO saturation by city. e End of Q1 2019 Home Data Index report also highlights growth by Home Price Index (HPI) growth and forecast HPI. e Mcallen-Edinburg-Mission, Texas metro tops ClearCapital's list with a forecast HPI of 80.95 and a forecast growth of 2.94%. e Mcallen-Edinburg-Mission metro's current REO saturation is at 1.62%, relatively low compared to other metros on the list. Las Vegas-Henderson-Paradise, Nevada and Akron, Ohio take the second and third spot, with REO saturation of 10.18% and 14.72%, respectively. Other high-performing metros include Akron, Ohio; Atlanta-Sandy Springs- Roswell, Georgia; Tucson, Arizona; Phoenix-Mesa-Scottsdale, Arizona; San Jose-Sunnyvale-Santa Clara, California; and Orlando, Florida. Rochester, New York is ranked as the bottom metro by forecast growth. ClearCapital notes a 92.89 forecast HPI and an HPI Index Growth -4.49% in this metro and an REO saturation, according to the report, of 10.63%. Many metros in the bottom ten and top ten lists hold REO saturation of over 10%. Baltimore-Columbia-Towson, Maryland holds the highest listed REO saturation at 16.52%, followed by the St. Louis metro at 15.25% and the Chicago metro area at 15.35%. On a national level, home prices are increasing, according to First American Financial Corporation's Real Housing Price Index (RHPI). e Index reveals that real house prices increased 2.9% year-over-year while the consumer house-buying power has increased 2.4% year-over-year. First American's data is in line with ClearCapital's data for California, revealing strong growth in the San Jose metro area. According to First American, California leads the nation for potential homebuyers, as four cities—San Jose, Los Angeles, San Francisco, and San Diego—where among six whose RHPI decreased and affordability increased. First American calculations of Realtor.com in February 2019 show that the number of listings in San Jose, Seattle, and San Francisco increased 124%, 89%, and 53% respectively, from 2018. New Hampshire (8.1%), Wisconsin (7.8%), Rhode Island (6.5%), Ohio (6%), and Georgia (6%) saw the largest year-over-year increases in the RHPI. Wyoming led the nation in the largest decrease in RHPI at 6%.

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