Five Questions With: Peter Walsh

"LENDERS PARTNER with Rhode Island Housing so that their customers can have access to our programs."

Peter Walsh is director of home ownership and customer service at Rhode Island Housing, a position he has held since September 2013. He joined Rhode Island Housing in 2010 as director of external relations. Prior to that, Walsh worked with Citizens Bank and Bank Rhode Island for 33 years.
He serves on the boards of Amos House, Neighborhood Health Plan of Rhode Island and the Providence Revolving Fund.
Walsh has a bachelor’s degree in accounting from Providence College and completed a graduate program in banking from the American Bankers Association’s Stonier Graduate School of Banking at Rutgers University.

PBN: There are signs of some economic recovery in Rhode Island, but the state continues to lag behind its neighbors and much of the U.S. How does home ownership in Rhode Island compare to neighboring states? Is there data on whether the rate or percentage of home ownership in Rhode Island is increasing or decreasing in comparison to other states?
WALSH:
Census data available through 2012 shows that all six New England states are back to the homeownership rates measured in 2000. All states had their ownership rates peak in 2007. Since that peak, the homeownership rate in Rhode Island has fallen by 6 percent. Connecticut, Maine, Massachusetts and New Hampshire ownership rates have all fallen 4 percent since the peak and Vermont has decreased by 2 percent.
Homeownership remains challenging in Rhode Island, as in much of the nation. The 2014 State of the Nation’s Housing Report released by the Joint Center for Housing Studies at Harvard University found national trends similar to those of New England. According to their research, the national homeownership rate in 2013 declined to 65.1 percent, while 60 percent of Rhode Island households own their home, a slightly lower rate than that of Massachusetts. The more rural states of Maine, New Hampshire and Vermont have ownership rates just above 70 percent, with Connecticut at 67 percent.
Positive signs include stabilization of homeownership rates, with 2013 showing the smallest decrease in homeowners since 2008, as well as improvement to economic forecasts and the foreclosure crisis winding down. High unemployment and a lack of new home building remain barriers to homeownership for many. The Obama administration’s July Housing Scorecard also includes many positive indicators, with the housing market continuing to show signs of progress, as sales of existing homes continue to rise for the third consecutive month, while foreclosure starts and completions remain in decline. Sales of existing homes are at their highest since October 2013 and home equity has also shown strong gains for homeowners, reaching the highest level in seven years.
Another trend to consider is the availability of Rhode Island’s housing stock. The market is tighter than ever, which means there’s increased competition for the homes available. This can certainly be good for the market, but something that our state’s homebuyers need to be aware of as well.
At Rhode Island Housing, our mortgage volume continues to be strong, in fact, during the first two quarters of 2014, we have experienced a level of registrations not seen since 2009. With the introduction of our new tax credit program and our homebuyer assistance options, moderate-income homebuyers are turning to us and our network of lending partners as they embark on their journey to homeownership.

PBN: How do lenders collaborate with Rhode Island Housing? What are the advantages to lenders?
WALSH:
Lenders partner with Rhode Island Housing so that their customers can have access to our programs. Rhode Island Housing, as part of its mission, provides mortgage financing for Rhode Islanders wishing to purchase a home. In many cases, it is their first home. Because we are a State Housing Finance Agency, we can offer down payment and closing cost assistance, if necessary, to borrowers. We have also offered better pricing to lenders when we buy the loans they originate, which leads to higher income for our lender partners than they were able to generate prior to these changes being implemented
Lenders have access to programs that are not available through any other conduit. For instance, Rhode Island Housing offers a no mortgage insurance loan with only 3 percent required as a down payment. This results in a lower payment for Rhode Island borrowers than they would be able to obtain otherwise without this program.Additionally, as we service all of our loans, our lenders’ customers get the benefit of local servicing for the life of their loan.

PBN: Is the number of lenders increasing or decreasing in last two, three or five years? Do they tend to be more national banks, community banks or credit unions?
WALSH:
Over the past year, Rhode Island Housing has focused on increasing our relationships with lenders. We currently have 36 participating lenders, which is an increase over the past few years. The list includes national banks, local banks and local credit unions.

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PBN: With the state’s sluggish economy, many people are having difficulty paying their mortgages. Does Rhode Island Housing have any policies or programs to address that concern?
WALSH:
Homeowners struggling to make their mortgage payments receive free counseling through the Rhode Island Housing HelpCenter. The HelpCenter counselors help homeowners to work with their lenders to try and obtain an affordable mortgage payment. The HelpCenter works with any lender on behalf of the homeowner, with the exception of Rhode Island Housing borrowers. Our borrowers are helped by our servicing staff.

PBN: The FirstHomes Tax Credit went into effect July 1 and has been fairly widely publicized. Has there been enough time to see what kind of response Rhode Island Housing is having to that new program?
WALSH
: Rhode Island Housing’s FirstHomes Tax Credit program is a tax credit program where qualified first time homebuyers, or buyers of homes in specific targeted areas, can obtain a tax credit every year they live in their new home and have a mortgage. This offering gives lenders a competitive advantage over lenders who do not offer the tax credit, resulting in additional business for the lenders who do participate.
The response to the tax credit program has been overwhelmingly positive. Since launching on July 1, we have received about 140 registrations. We currently have 26 FirstHomes Tax Credit Approved Lenders and the list is growing. Lenders participating in the tax credit program differ from the list of lenders who originate Rhode Island Housing mortgages, although many do participate in both. Nearly half of the tax credit registrations we have received so far have been from our lender partners, which demonstrates that they are aware of the value of this tax credit to their customers, and want to make sure they deliver the best value to them when they are buying a home.

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