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25 January 2025 January 2025 » C O V E R S T O R Y "unnecessary" regulations, which could speed up construction and reduce costs. The President-elect has also mentioned opening up government-owned land and making it available for affordable housing construction. While much of the land owned by the federal govern- ment isn't suitable for housing, some of it is, and making it available would help solve the limited land availability that has been a headwind for builders over the past decade. Finally, the Trump administration could consider expanding the Qualified Opportunity Zone (QOZ) program that was implemented during its first term. This program was reasonably successful in bringing much-needed capital into underserved and underdeveloped areas, delivering a win/win scenario for these communities and the investors who pro- vided the development funds in exchange for relief on their capital gains taxes. It's worth noting that the Trump administration is unlikely to pursue some of the policies espoused by the Biden administration and the Harris campaign calling for rent control, a cap on investment properties, and a dramat- ic increase in the capital gains tax rate. Eliminating or not implementing these policies should result in a more robust environment for real estate investors. Q: How do you expect interest rate policies from the Fed- eral Reserve to influence mort- gage rates, housing affordability, and demand in the coming year? The Federal Reserve is in an inter- esting position as we enter 2025: they've managed to slow down what had been an overheated economy, and probably need to continue cutting the Fed Funds rate to avoid a possible recession; but recent reports also show that inflation may be creeping back up, suggesting that rate cuts might run the risk of re- starting higher rates of inflation. Further complicating the matter are the propos- als from the Trump administration for higher tariffs and mass deportations— both of which many economists view as inflationary and likely to increase an already-too-high federal deficit of over $36 trillion. The Fed Funds rate isn't directly tied to mortgage rates, but it does influence interest rates in general and set the over- all tone for credit and lending, so if the Fed decides to reverse course and raise the Fed Funds rate, as some economists are speculating, it wouldn't be a surprise to see mortgage rates follow suit. But it's more likely that mortgage rates will closely track yields on the 10-year U.S. Treasury, as they have historically. Those bond yields may increase unless there's some progress toward deficit reduction; this could also result in mort- gage rates going up, or at least not going down very much. Q: Do you anticipate major shifts in housing construc- tion or availability due to potential changes in federal regulations, tariffs, or supply chain dynamics? Based strictly on supply and demand, we should see builders continue to increase construction of single-family homes in 2025. But there are a lot of mov- ing parts that could disrupt the new home market. Fewer regulatory hurdles and in- creased availability of government lands for housing development could both increase production, but mass deporta- tion of undocumented immigrants could exacerbate labor shortages and increase labor costs for builders, and higher tariffs could also increase costs or disrupt supply chains. There's almost always a significant difference between the hyperbole of a presidential campaign and the actual policies implemented after the election; if that's true this time, the new home market will probably continue to see incremental growth in housing starts and completions to meet demand. Q: Which regions or cities are likely to experience the fastest growth or declines in housing prices, and what factors are driving those trends? A lot of this comes down to supply and demand. There are a few states FEATURE STORY THE BEST SOLUTION IS NOT ALWAYS THE SHINY NEW TOY While it can be debated as to how much default and foreclosure activity lies ahead, default servicers must carefully examine their tech systems to keep ahead of the curve. FEATURE STORY DRIVING GROWTH: LEVERAGING HOME EQUITY TO EXPAND LOAN OFFICER OPPORTUNITIES In a tight market, LOs seeking to diversify their offerings are turning to home equity products to expand their role and become a financial guide for life. COUNSEL'S CORNER FACING THE FORECLOSURE AND BANKRUPTCY CHALLENGES OF TODAY Robert S. Kahane, a foreclosure and bankruptcy attorney with more than 30 years under his belt, discusses current compliance issues related to loan servicing process enhancements. EXPERT INSIGHTS TONY JULIANELLE, CEO OF REAL ATLAS ESTATE discusses current market trends and the forces that will shape the landscape in the industry. ALSO IN THIS ISSUE: Brought to you by & YOUR TRUSTED SOURCE FOR MORTGAGE BANK ING AND SERVICING NEWS AUGUST 2024 Magazine The Burden of Proof MortgagePoint profiles Bron, Inc., a company that has carved out a unique niche with a focus on crucial but often-overlooked tasks such as managing registrations, utilities, and HOA verifications. Subscribe to MortgagePoint and MortgagePoint Digital now! Call 800.856.8060 to take advantage of our special offer! Experts you trust. People you know. News you want. MortgagePoint is putting essential mortgage market news at your fingertips with our new digital edition, now available online via your smartphone, tablet, or computer. Enjoy the magazine at your desk, and tap into MortgagePoint Digital's easily accessible platform anywhere, anytime. Committed to giving originators, servicers, and all lending professionals access to smarter perspectives, MortgagePoint believes it's time to think differently about the mortgage industry. Because the American Dream is evolving . . . are you? Brought to you by & YOUR TRUSTED SOURCE FOR MORTGAGE BANK ING AND SERVICING NEWS JULY 2024 Magazine White House Main Street America TO FROM THE As the November elections near, what ripple effects will the next Administration have on the housing industry? MortgagePoint gathered a panel of experts to dig deeper into the impact of the Presidential Elections and potential changes in the White House. TO YOUR TRUSTED SOURCE FOR MORTGAGE BANK ING AND SERVICING NEWS OCTOBER 2024 Magazine The Industry Leaves Its Mark at Five Star Conference Exclusive coverage from this year's Five Star Conference, including profiles of the Lifetime Achievement honoree, the Women in Housing Leadership Award recipients, and more. THE 2024 FIVE STAR CONFERENCE & EXPO SEPTEMBER 24-26, 2024 DALLAS, TEXAS