The Price of Keeping People in Their Homes

first_img Share 1Save  Print This Post Demand Propels Home Prices Upward 2 days ago April 7, 2020 1,328 Views Home / Daily Dose / The Price of Keeping People in Their Homes Servicers Navigate the Post-Pandemic World 2 days ago The Price of Keeping People in Their Homes Sign up for DS News Daily Mike Albanese is a reporter for DS News and MReport. He is a University of Alabama graduate with a degree in journalism and a minor in communications. He has worked for publications—both print and online—covering numerous beats. A Connecticut native, Albanese currently resides in Lewisville. Previous: HUD Announces Fair Housing Month Theme Next: Ginnie Mae Approves Facility to Aid in Servicer Liquidity in Daily Dose, Featured, Market Studies, News The Best Markets For Residential Property Investors 2 days ago Tagged with: Coronavirus housing market 2020 The Best Markets For Residential Property Investors 2 days ago Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago Analysis from the Urban Institute found that the cost of housing assistance for both renters and homeowners could cost between $40.5 to $162 billion. “In the context of a $2 trillion legislative expenditure, this is a small amount that could go a long way toward stabilizing the housing market while allowing families to remain in their homes,” said the report. Agencies such as the Federal Housing Administration, Fannie Mae, Freddie Mac, the U.S. Department of Veterans Affairs, and the Department of Agriculture have announced foreclosure and evictions moratoriums due to the spread of COVID-19. The report said these agencies cover about 70% of all outstanding mortgage holders—33.4 million homeowners. The report adds that homeowners with private mortgages held by banks or private investors, roughly 14.6 million homeowners, are not covered. Urban Institute’s report said renters were more financially vulnerable than homeowners going into this economic downturn, as they have more of their monthly income going towards housing. Rent payment accounts for 30% of a typical rent’s household income, which is a steep increase from 19% for homeowners with a mortgage. The research ran calculations, assuming 20% of renters and 12% of homeowners will need assistance. In a worst-case scenario, they doubled the share to 40% and 24%. For their calculation, they used $912 as the median 2019 rent cost and $945 for the median 2019 mortgage payment.  In these scenarios, 8.8 million renters and 5.8 million homeowners would need payment assistance, which would cost $40.5 billion for three months of $81 billion for six months. Under a worst-case scenario, 17.6 million renters and 11.6 million homeowners would need assistance, with the price tag being $81 billion for three months and $162 billion for six months. The Chief Economist at Moody’s Analytics estimates that as many as 30% of Americans with home loans—nearly 15 million households—could stop paying their loans if the economy is closed through the summer.“This is an unprecedented event,” said Susan Wachter, professor of real estate and finance at the Wharton School of the University of Pennsylvania, in an article by the Los Angeles Times. “The great financial crisis happened over a number of years. This is happening in a matter of months—a matter of weeks.” Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Demand Propels Home Prices Upward 2 days ago Coronavirus housing market 2020 2020-04-07 Mike Albanese Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago About Author: Mike Albaneselast_img read more

Wider view of consultation needed before law changes

first_img Previous Article Next Article Comments are closed. New research reveals the wider implications of staff consultation, andreminds employers it should be more than just talks over job cuts. By MikeBroadMassive job cuts at companies like Corus, Marconi and Motorola have put theissue of effective staff consultation high on the political agenda. But ground-breaking research, released by the Involvement and ParticipationAssociation last week, shows this is a much wider area than just handlingcollective redundancies (News, 17 July). Employers must revisit theircommunication processes to ensure they do not fall foul of the information andconsultation directive due to become law in 2003. While the report claims many companies in the UK have improved staffconsultation procedures, it stresses many need to understand better thebusiness case for improved communication. The IPA report provides a framework of good practice that employers can use.It also includes an information and consultation audit that highlights thestrengths and weaknesses of a company’s consultative structure (see below). Willie Coupar, director of the IPA, explained, “It is time to move thepolitical debate to a phase where practitioners are developing bestpractice.” The report, Sharing the Challenge Ahead: Informing and Consulting with yourWorkforce, claims that for companies to benefit, they need to involve employeesin tackling real business problems through appropriate and flexible structures.Problem areas include the composition of consultative bodies,confidentiality, defining information and consultation and how to handlecollective redundancies. The report claims staff councils or forums work well as consultationstructures. It cites pharmaceutical company Astra Zeneca as an example of bestpractice. The company’s 10,000 UK staff are represented through joint consultationcommittees at all of its sites, which meet regularly and are chaired by localmanagers. They feed into a national joint consultation forum that meets twice ayear, which in turn feeds into a European consultation committee that meetsannually. Richard Stokes, HR director, services and policy development, at AstraZeneca, said, “Our structure gives employees an important input intosignificant business decisions and makes senior managers aware that they haveto defend the decisions taken.” There is also a need to define the difference between information,consultation and negotiation, claims the report, and provide staff with theinformation they need to understand the challenges facing the business. Confidentiality is often a sticking point for senior management. The reportadvises spelling out what information is confidential to employeerepresentatives. Blue Circle Cement, for example, demonstrated how sensitive business issuescan be discussed with staff effectively. It was taken over by French buildingmaterials group Lafarge in a £3.1bn deal earlier this month. Staff support forthe deal was fostered through its consultative structure. Shop stewards were kept informed about the takeover, and unions andmanagement made joint presentations to staff at each site about how they couldachieve the new company goals. Mike Gibson, Blue Circle Cement’s national employee relations manager, said,”With union reps on the platform, it was easier to get the message acrossthat Lafarge is a good company and things are looking good.” Unions at Blue Circle Cement are heavily involved in all aspects of thebusiness at local and national level, and are cited as another example of goodpractice. IPA’s report provides advice on the thorny issue of collective redundancy.It calls for employers to treat consultation as a genuine discussion with staffon how dismissals can be avoid-ed. Employers should try to reduce their numberand mitigate the effects. Information and consultation structures are vital to improvingdecision-making in difficult times. But Stokes says it takes more thanprocedures and processes. Senior management has to support it. At Astra Zeneca,the chief executive attends at least one national joint consultation forummeeting a year and chairs the annual meeting of the European consultationcommittee. Mutual respect, trust, openness and honesty do not come easily, warns theIPA report. Mark O’Connell, HR director of Eurotunnel, believes training for managersand staff representatives is essential. He said it is a “fundamentalchallenge” to get the employers and staff to embrace the culture ofconsultation. This week, Eurotunnel is piloting a two-day course for managers and staffrepresentatives to improve consultation skills, and is splitting the cost ofthe course equally with the T&G union. The IPA report is positive about the level of staff consultation thatalready occurs in the UK, and is confident that the forthcoming directive willbe more about principles than a one-size-fits-all model of consultation. David Yeandle, deputy director of employment policy at the EEF, who wasinvolved in the research, said, “I think the research has demonstrated toa wider audience that consultation is alive and well in the UK. There are manycompanies doing a lot of valuable good practice in this area. “The IPA guidance shows that there are many different ways of achievingthe objectives of improving business performance that include employees. “Consultation has to be something that fits in with your managementstyle, organisational structure and employee-relations culture,” he added.www.ipa-involve.comThe IPA audit – questions employers must ask themselves– Are the objectives of information and consultation clearly defined?– Is there a shared understanding of the objective?– Is the role of top managers clearly defined?– Is the role of employee representatives clearly defined?– Are the arrangements for information disclosure appropriate?– Is the process of consultation appropriate?– Are the consultative meetings effective?– Is there effective feedback from consultative meetings?– Is there effective training and development for consultation?– Are there key links to other external activities?– Is there a strong culture of information and consultation?– Is there a regular process of review and evaluation?Main points of EU directiveUK firms with over 150 employers have just three years to implement the EUdirective on information and consultation. It means that staff have to beconsulted in advance of any significant business change. Those companies with more than 100 staff have five years, and those with aworkforce of more than 50 have seven years. The CIPD claims that the EU directive will not transform the way UKcompanies have to communicate with their workforce. Diane Sinclair, CIPD adviser on employee relations, said, “Thedirective clearly leaves the practical arrangements for informing andconsulting employees to be defined by the member states. Thus, much will dependon the way that the directive is implemented in the UK. “Given its persistent opposition to the proposal, and its abstentionfrom the final vote, it seems very unlikely that the UK Government will‘gold-plate’ the directive. “Indeed, it has already stated that it will take full advantage of theflexibility allowed by the text, which it worked hard to negotiate.” Wider view of consultation needed before law changesOn 24 Jul 2001 in Personnel Today Related posts:No related photos.last_img read more