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» VISIT US ONLINE @ DSNEWS.COM 49 FIRST-TIME BUYERS SHOW INTEREST, FACE TOUGH MARKET More than 4 million first-time buyers want to enter the market, but they face some tough issues as market conditions aren't exactly favorable to new buyers. is conclusion came from the Zillow Housing Confidence Index (ZHCI), a new calculation released by Zillow and Pulsenomics. e ZHCI is a measure of consumer sentiment; anything more than 50 indicates a positive sentiment. e national index at the time of the announcement was 63.7. Of the 20 metros surveyed, 11 had individual confidence levels above the national average. In 19 of the 20 large metros surveyed, more than 5 percent indicated they wanted to buy a home in the next year. e report noted, "Among current renters, homeownership aspirations were particularly strong, with about 10 percent of all renters nationwide saying they would like to buy within the next 12 months." A vast majority of respondents said they were "confident or somewhat confident" they could afford a home in 2014. If every respondent who indicated they wanted to buy a home actually purchased one, first-time home sales would total more than 4.2 million for 2014, more than double the roughly 2.1 million first-time buyers in 2013. While this optimistic total from Zillow suggests interest is high, actually purchasing a home should prove to be a challenge in the upcoming year. Market conditions are mixed: inventory, up 11 percent from a year ago, is still well below optimal levels and has fallen year-over-year in eight of 20 metros measured by the ZHCI. Mortgage rates, once a record-low 3.3 percent in 2013, have risen to 4.2 percent, according to the Zillow Mortgage Marketplace. A dearth of inventory coupled with rising mortgage rates could push homes out of a homebuyer's price range, particularly for first- time buyers. "For the housing market to continue its recovery, it is critical that homes are both available and remain affordable to meet the strong demand these survey results are predicting, particularly from first-time homebuyers," said Zillow chief economist Dr. Stan Humphries. "Even after a wrenching housing recession, this data shows that the dream of homeownership remains very much alive and well, even in those areas that were hardest hit." He added, "But these aspirations must also contend with the current reality, and in many areas, conditions remain difficult for buyers. e market is moving toward more balance between buyers and sellers, but it is a slow and uneven process." Areas indicated by the ZHCI with the highest interest in purchasing a new home come from metros that were hit hardest by the housing recession: Miami (67.5), Atlanta (62.9), and Las Vegas (64.1). Each was near or above the national index of 63.7 for "overall housing confidence." CFPB Recovers $1M for Veterans e Consumer Financial Protection Bureau (CFPB) announced that servicemembers, veterans, and their families who complained to the bureau about financial products or services have recovered more than $1 million. e report covers more than 14,000 complaints filed from July 21, 2011, through February 1, 2014. Mortgage complaints made up approximately 4,700 of complaints filed by veterans and their families, which made up 33 percent of total complaints. "e most common type of mortgage complaint concerns problems consumers face when they are unable to make payments, such as issues related to loan modifications, collections, or foreclosures (55 percent)," the report said. e CFPB says that companies have already responded to approximately 3,700, or 91 percent, of the complaints sent to them. e median monetary relief reported by military consumers was $470. Consumers have disputed approximately 900 company responses to mortgage complaints. "Military families make enormous sacrifices for our nation and deserve to be protected," said CFPB Director Richard Cordray. "I am pleased that the bureau has assisted thousands in cutting through red tape when dealing with their financial institutions. However, the complaints show that many servicemembers, veterans, and their families are not getting the protections accorded to them by federal laws, and that raises concern." According to the report, a large concern for veterans is working with mortgage servicers after receiving permanent change of station (PCS) orders. "In particular, military consumers have reported frustration with mortgage servicers' lack of knowledge about military-specific programs. Consumers report that servicers remain unaware of the permanent change of station guidance issued by the CFPB and other federal financial regulators as well as short sale guidelines aimed at assisting servicemembers with PCS orders, such as the Federal Housing Financial Agency's August 2012 Short Sale Guidelines for Fannie and Freddie Loans," the report said.

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