HSH Associates, a consumer loan information company out of New Jersey, has released a report called The Ten Most Important Factors for 2010′s Mortgage Market. Here are their top 10 factors for 2010:
1. A Changing Regulatory Environment.
2. A Consumer Finance Protection Agency is coming.
3. Federal Mortgage and Housing Support Programs will end.
4. Home-Buying Tax Incentives will expire in April.
5. Fannie Mae and Freddie Mac will change.
6. The Economy Should Improve.
7. Lending Standards May Start to Ease.
8. Mortgage Rates Should Remain Favorable.
9. Demand for Homes Remains Stable.
10. Failing Loans Will Continue to Distort The Market.
Based on our own article on what’s holding back the housing market, #6 on their list is our top hope for the country. The economy improves when unemployment drops, spending increases more than it has thus far, and the population stabilizes for a little while.
Also based on our article, #7 goes directly to our worry about the banking industry. There was a recent article about Bank of America and Citigroup being on opposite ends of approving loan modifications for homeowners, with Citigroup actually being ahead of the game for once. However, Citigroup has also announced that there will be significant layoffs in the mortgage area of their business, which will back up the process, while Bank of America is increasing staff to try to overcome those shortcomings. Personally I think lending standards are going to remain tough for awhile, and they probably need to for the protection of consumers overall. But banks do need to move faster to assist those people who are going through the approval process, especially if they are going to be qualified.
And the one factor most important to many people visiting this blog is #9, the demand for homes being stable. In this case, most are hoping the demand for homes increases, which is dependent upon both employment growing and home prices holding somewhat steady, since the tax incentives are supposed to be gone by the end of April.
Here’s to hoping that 2010 will see that a steady stream of good news regarding the housing industry across the board.
Mitch Mitchell is a consultant who writes and participates in many different fields, including real estate finance issues. 
I hope to see a steady stream of good news across the housing market as well! I really enjoy reading your articles! This is a great blog.
I am glad that you enjoy reading our articles! If you are ever interested in advertising your properties in Scottsdale please send me an email.
Thanks for posting, ahhhh, but with so much financial uncertainty nowadays I am very skeptical to be taking part in the housing market these days, at least for a while until things improve and stay that way for a while. Let’s hope they do! Thanks.
A very nice list with many good points. I think the biggest problem is going to bee no. 5. Fannie Mae and Freddie Mac will change and no. 6. The Economy should improve this year.
The reason I didn’t highlight number five as a major thing is because in 2009 neither Fannie Mae or Freddie Mac meant all that much to the housing industry, since they were both in distress. If either of them really had much impact on what happened in 2009 in a positive way I might have had a different thought.
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How can we say that the demand for home loans will remain the same, I think that the demand for home loans is increasing and expected to increase more in this year!!
In the UK we are beginning to see a slight relaxation in mortgage lending. However in Spain there is still reluctance from banks to lend particularly to non Spanish residents. Many banks are restricting their advances to 50% LTV. This really is not helpful but the Spanish economy as real problems to overcome before lending relaxes. This really is not helpful for those of looking for a recovery
2010 is turning out to be an interesting year for sure.
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