On Tuesday night, President Barack Obama stood before the nation and delivered his final State of the Union Address. The president touched on a number of topics including budgets, insurance coverage, gun violence, and minimum wage, among others. Five Star Institute President and CEO Ed Delgado released the following statement in response to the speech:
“I congratulate President Obama for his efforts leading our country over the course of two terms in office,” Delgado stated. “He has had several successes in his tenure and did what was necessary to affect calm in the economy—but there is a degree of uncertainty regarding the future of homeownership in the United States.”
“The housing sector of the economy, in particular, needs to be re-evaluated. Although the housing market made strides this past year, the homeownership rate now stands at the lowest level in 48 years, millennials are saddled with $1.3 trillion in student loan debt, and job prospects for recent grads are bleak. As such, President Obama’s efforts on the housing front cannot be counted as a victory. There now exist barriers of entry for homeownership among first-time homebuyers, millennials, and minorities,” Delgado said.
“Bottom line—it is harder today than at any time in recent history to get approved for a mortgage loan.”
Ed Delgado, President and CEO, The Five Star Institute
“Instead of resolving homeownership issues on a broad scale while introducing fair and responsible solutions designed to expand the promise of homeownership, government officials have instead overregulated the industry and measured the success of recovery based upon the size of fines and penalties assessed,” Delgado noted. “Bottom line—it is harder today than at any time in recent history to get approved for a mortgage loan—a condition amplified by a burdened industry reeling from reform and restriction.”
He continued, “Not enough was done to create a lasting solution to bolster homeownership in the U.S. What the Obama Administration did was provide a temporary feel good solution, not a long term right solution.”
Editor's note: The Five Star Institute is the parent company of DS News and DSNews.com.