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HOME BUILDING
HBA
PDX
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ORG
HOME BUILDERS ASSOCIATION OF METROPOLITAN PORTLAND •
FEBRUARY, 2013
EcoVative gets a name
change: Build Right
The name change reflects an
even more relevant business-to-
business conference. Check out
our amazing program!
—See page 14
By HBA Chief Executive Officer
Dave Nielsen
From
The Top
WHAT ’ S INSIDE THIS MONTH’ S ISSUE
YOUR INDUSTRY, page 9
YOUR BUSINESS, page 11
Why a preferred lender
can, and should increase
your sales
The key to turning financing
into a tool that creates sales,
improves cash flow, and is
additive to your brand and
sales experience is requiring
your lender to be a business
partner and not a vendor.
Council President Tom
Hughes outlines Metro’s
2013 priorities
Over 130 members and
elected officials attended the
recent HBA Member Lunch to
hear Metro Council President
Tom Hughes look back on his
first two years in office and
what his priorities are for the
next two years of his term.
UP FRONT, page 5
HBA says goodbye to two
industry leaders
HBAmembers, Darrel Wallace
and Hans Vatheuer left lasting
legacies for their industry and
to their communities. Bothmen
made a living in our industry,
but they left a mark by helping
others less fortunate.
FOUNDATION, page 8
2013 Industry Scholarships
now available
Since 2004, the Home
Bui lders Foundat ion has
awarded scholarships to
those pursuing a career in the
home building industry. A
partnership with OSAC brings
the scholarship applications
online.
Join us at the 66th Spring
Home & Garden Show!
Catch the Original Plant Sale,
Home Depot’s DIY stage, Portland
Orchid Society, Showcase Gardens
and other favorites.
—See page 6
By Jon Bell
For the HBA
If 2013 is going to be the year of anything, it may
very well be the year of the mortgage industry
change.
Starting with the close call that was the fis-
cal cliff at the very beginning of the year
and followed by the Consumer Finan-
cial Protection Bureau’s announce-
ment of stringent new rules in
mid January, 2013 started off
with a bang in terms of changes
to the lending landscape. And
those changes, even if some of
them are just confirmations of current
practices, are likely to set the tone in
the lending market for the foresee-
able future.
“This will definitely be a year of
change,” said Theresea Springer, a se-
nior loan officer in the home loan divi-
sion of Willamette Valley Bank. “A year
of change and, really, a shakeout year.”
The most noticeable changes in
the lending industry came in January
when the federal CFPB announced
new rules aimed at tightening regu-
lation of the industry. While not all of
them took effect immediately, they all
will likely be implemented over the next 12 months.
Among the most talked-about new rules are those relating to quali-
fied mortgages and borrowers’ ability to repay loans. To help prevent
consumers from taking on loans outside of their means — and to help
avert lawsuits by borrowers who might find themselves later unable to
pay their mortgages — the CFPB has enacted the Ability to Pay Rule,
which laid out basic requirements that all newmortgages must comply
with.
Under the rule, lenders must verify a prospective borrower’s financial
information, including their employment status, income and assets and
credit history. They must also assess a borrower’s debt-to-income ratio
and look at a consumer’s ability to repay principal and interest over the
term of the loan, not just during an intro-
ductory rate.
Similarly, the CFPB has laid out the fea-
tures of what it deems a qualified mort-
gage, including that the loan has no
excessive upfront points or fees and no
interest-only payments or negative amor-
tization payments. Qualified mortgages
will primarily be provided to people
who have debt-to-income ratios
less than or equal to 43 per-
cent.
While the new rules tamp
down on the consumer mort-
gage industry, many lenders
have already implemented more
rigorous verification standards and
done away with risky loans.
“Many lenders are already op-
erating within many of the new
guidelines,” said Anthony Grasst,
vice president, builder division for
Home Street Bank. “These are still
good, because it reinforces to ev-
erybody that we don’t want to get
back to the same type of lending
that we saw before, but I’m not sure
you’re really going to see any major
shifts in how people are operating.”
In addition to other new rules and
amendments relating to the Trust in Lending Act and other, less well-
known aspects of the consumer lending space, Springer said some
lenders are also concerned about the CFPB’s new approach to issuing
rules. In the past, a rule was considered issued when it was published
in the Federal Register. Now, new rules will be considered issued either
when the rule is published in the register or when it is posted to the
CFPB’s web site, whichever comes first. While this may be an attempt
to keep to deadlines imposed on the CFPB by the federal Dodd-Frank
legislation, Springer said it might also allow the bureau to fast-track
other new rules.
See CHANGES / page 2
Lending industry readies for rule changes
and a return to better business in 2013
I read a blog last month that
provided some good ideas on
how to bring about change in
this New Year. I firmly believe
2013 will be the year our whole
industry feels the benefit of the
growing housing market. 2012
new home permit activity was
up 34 percent and signs are
showing continued growth into
2013. Remodeling activity held
firm from 2011, but again, signs
are pointing to growth in 2013.
Housing prices are appreciating,
inventory is down and sales are
up.
With that, what can you do,
professionally and personally, to
break out of some of the “hun-
kered down” habits of mental-
ity formed during the last few
years?
Below are 12 ideas the author,
Patti Johnson, shared. She was
careful not to call these “resolu-
tions.” Instead, she encouraged
people to look at where they
are at and which of these ideas
might spark them to have new
energy and insight this year.
Then, pick one or two.
For purposes of brevity, I’ve
only listed the title of each idea.
Most are self-explanatory, but
if you would like a little more
thoughts on one or more of
them, just do a search on the
title of this article. You’ll find the
author’s full article in the Success
Magazine blog.
1. Change one little habit.
2. List what’s in your control
with your top frustration.
3. Find your options [regarding
a major change].
4. Remember what you loved
as a kid [rediscover a past
joy].
5. Learn something new that
scares you just a little.
6. List three things you’ll take
off your ‘to do’ list [learn to
say no].
7. How will you serve?
8. Take one little baby step to-
ward your big dream.
9. Do one thing every month
totally out of your zone.
10. Journal.
11. Do the domino exercise
[trace steps back from a ’12
success].
12. Find the magic in the ‘nor-
mal’ days.
Twelve ideas
for shaking
up 2013
WHEN:
FEBRUARY 20-24, 2013
WHERE:
PORTLAND EXPO CENTER
SEE
SHOW SPOTLIGHT
ON PAGE 6 FOR MORE INFO
HBA members receive 2 free show tickets!
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