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44 YOUNG HOMEOWNERS DRIVING HOUSEHOLD NEW FORMATIONS Household formation in the final quarter of 2017 was the highest since 2015, with 1.1 million new households added to the U.S. housing industry as the year wound down. A comparison with last year's Q 4 shows an increase of 1.44 million households, up 1.2 percent. Zillow reported that homeowners under 35 mostly comprise these households. e number of homeowner households increased 1.4 percent over Q 3 2017, with 1.04 million new households reported by U.S. Census Bureau. Compared to Q 4 2016, that increase was 1.52 million new homeowner households and a two percent rise. Although there was a slight increase of 61,000 (up 0.1 percent) in renter households for the last quarter, they have been decreasing consistently over the previous three quarters, mimicking the quarterly declines at the end of 2004 and early 2005. e report indicated that the trend in homeownership is also shifting by age, with the number of homeowners under 35 increasing 36 percent in Q 4 2017, up 0.4 percent over Q 3 2017. e year-over-year increase was 1.3 percent, which is the highest since 2004. Also, homeowners aged between 35 and 44 increased 0.2 percent yearly, homeowners aged 45 to 54 declined of 0.3 percent, homeowners aged 55 to 64 increased 0.5 percent, and homeowners aged 65 and older dropped 0.3 percent. e top five cities posting a surge in homeownership were Columbus, Ohio (up five percent to 61.3 percent); Orlando, Florida (up 4.3 percent to 63 percent); San Antonio, Texas (up 4.1 percent to 67.1 percent); Cincinnati, Ohio (up 3.9 percent to 64.8 percent); and Phoenix, Arizona (up 3.9 percent to 67.3 percent). However, the cities experiencing the most substantial declines are Baltimore, Maryland (down 4.6 percent); Denver, Colorado (down 4.5 percent); Riverside, Iowa (down 3.4 percent); San Francisco, California (down 2.9 percent); and Boston, Massachusetts (down 2.8 percent). "NO FURTHER" SAYS CFPB ACTING DIRECTOR e Consumer Financial Protection Bureau (CFPB) officially released its strategic plan for fiscal years 2018-2022, confirming a shift away from enforcement that had been rumored by alleged internal memos. In the introductory message from CFPB Acting Director Mick Mulvaney, he said, "In reviewing the draft Strategic Plan released by the Bureau in October 2017, it became clear to me that the Bureau needed a more coherent strategic direction." Vowing to adhere to the Bureau's statutory responsibilities but go "no further," Mulvaney explained that "pushing the envelope in pursuit of other objectives ignores the will of the American people" and "also risks trampling upon the liberties of our citizens." Mulvaney says that the revised strategic plan will draw its focus from the Dodd-Frank Act that created the Bureau, shifting focus toward "[regulating] the offering and provision of consumer financial products or services under the Federal consumer financial laws" and "[educating and informing] consumers to make better informed financial decisions." e CFPB strategic plan lays out three goals: ensure that all consumers have access to markets for consumer financial products and services; implement and enforce the law consistently to ensure that markets for consumer financial products and services are fair, transparent, and competitive; and foster operational excellence through efficient and effective processes, governance, and security of resources and information. e White House also released President Trump's 2019 budget plan, which proposes significant changes for the CFPB. As reported by the Washington Post, the President's budget plan would have the CFPB funded by Congress rather than the Federal Reserve, which would give the Bureau more Congressional oversight. e proposal would also diminish the CFPB's enforcement capabilities and cap the agency's budget at its 2015 level of $485 million, down from a projected $630 million in 2018. According to a statement released by the White House, "e proposed reforms would impose financial discipline, reduce wasteful spending, and ensure appropriate congressional oversight. ... To prevent actions that unduly burden the financial industry and limit consumer choice, the proposal restricts CFPB's broad enforcement authority over Federal consumer law."

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