Investor Ban: Will It Fix Housing… Or Break It?

0:00Good Thursday afternoon to you. Welcome to the John Sanchez show on News Talk 780K. Wait, it's a pleasure to be with you and a pleasure to be with my co-host. Glad I'm not having a fly solo today, boys. I just tell you, I'm tired, stressed out. Yeah, it's, it's all the above. So I'm glad I'm with my buddies today to be able to share the, well, both of us to white for, for once, both of us had bad news today. Oh my goodness. Do I belong to on cue home loans? How are you, my friend? John, I'm doing okay. And I love your, I just love your attitude. I mean, thing you could be doing. No, you know, but you come on here every day with a positive attitude. And that's what keeps the world around. So that's what keeps it going around. Absolutely. Thank you, brother. Appreciate that so much indeed. It is. Thank you, Aaron Clark of Italy. How are you doing? Great. Going to be a fun topic today. Yeah, getting his and that, that truth. You're in the nice, calm, cool, collected world air in the world of housing, at least for the moment, but we will, my, well, my world's like a parasite. It hits you where you're not expecting it, you know? Yeah, yeah, yeah, exactly, exactly.

1:00And where there's one problem, there's many, many more. Yeah. You know, affecting the whole system. You know, it really is speaking of that. You know, I use that analogy where there's one cockroach. There's, you know, hundreds of others. And I use that guy's, gosh, what's it been now? Probably close to a month ago when I started to see, and not just me, but everybody on Wall Street started to see problems with these private credit funds, speaking of which, and I spent a few minutes on the show. I think it was on a Friday time. Matter of fact, it was this last Friday, bringing everybody up to date, Dwight, there was a mortgage company in the UK that, that, that went belly up. They were borrowing money on assets from various lenders saying, oh, you're the only lender on this asset. So, but anyways, this, this is the other issue that, you know, weighed on the market today and it's just getting worse and worse. And these are these private credit funds. All of a sudden, there's a bunch of redemptions. And this is what happens. You know, the old cockroach theory where there's one problem, there's many more. And so we've had a number of these private credit funds from some of the major Wall Street firms say, hey, you know what? You're, you're limited to redemptions, which is very normal. It's in the perspective. So a lot of these different companies, but people forget that. And a lot of these funds are getting hit with redemptions and the funds like,

2:02no, we can't give you the money back. And so it just makes all the headlines in the bottom line of ways on the market. And so you take that on top of the, the problem with the oil situation. And yeah, we had us a fine yesterday to say the very least. What is it, John? Everybody wants their money back. Is that kind of that? Yeah, that's, that's what it is. We're getting into a situation, Dwight, where liquidity is really becoming a major issue. When, when you get into global tensions like this, and I'm talking on the institutional side, more so on the retail, than on the retail side, what ends up happening is these institutions, they, they start to get real panicky, right? And so they're getting hit with redemptions from their, their clients, right? They want their money back. And so it creates this cascading effect where they start selling everything. And that's, you know, frankly, that's one of the reasons that we've not seen gold do anything spectacular during this Iraq war because people are going, you know what? I've had a good run up a gold, let's liquidate it. Let's get some cash going. So everyone's in the cash generation mode right now. And that's, you know, again, what's happening on the private credit side of things. But also with a lot of different areas, it's happening, you know, in, in your world.

3:05I mean, you're, you're seeing a lot of bond redemptions going on because people need the cash. They want to sit on the cash for whatever the reason is, whether it's panic or, you know, they got bills to pay. Maybe they lost a bunch of money in the market from a margin standpoint or something. But the bottom line is liquidity is the name of the game right now. And if you can't provide it, you're getting spanked pretty good. And we're seeing some of these private credit funds just stock performances as well. I'll see if I can research it and find it. I don't know if I'll get it. But, you know, one of the key indicators in my world is if you start selling your servicing portfolio, you know, that's how you get cash. So if people are experiencing one servicer to the next to the next, it may just be an attempt to recapture some cash. Absolutely. Yeah. Absolutely. And there's billions of servicing portfolios out there. And that's the easiest way really to get cash right now. Yes. Yes. No, that's an excellent point. You haven't mentioned that in a long time. I don't like it. I don't like when you mention that. No, I don't know. I don't know. I don't know. It's happening. It's the numbers of 0809. Yeah. I mean, you know, there's, you're seeing some pullback, some tightening on some guidelines.

4:08But it's not been anything that's been, you know, alarming, let's just say, but it'd be interesting to see if there is some liquidity issues and people are dumping their servicing portfolios a little bit. Yes, yes. I'm looking at that. Yeah, please, yeah, please monitor that side of it. All right. Folks, let me tell you what we have lined up with Aaron and with Dwight today, besides everything in the market, that'll, of course, I'll get to you in just a second. Today, Washington passed the biggest housing affordability bill in 30 years. And it includes a very, very controversial rule, a new rule. Of course, it's backed by the president. I think this originally was his idea. And with this rule that passed the Senate today says is Wall Street or excuse me, the government can ban large investors from buying single family homes. We're talking if they already own 350 homes or more, this bill would ban them from buying any more. Now, remember folks, after that 0809 time period, time period and the crunch and everything that happened, the institutional investors in many cases were the savior, right?

5:09Because they came in and they gobbled up a bunch of houses. But when I say the savior, it depends upon what side of the venture on it. This is what Aaron's going to, you know, really explain because the supporters of this bill. And again, this only passed the Senate. They're not saying it's got much luck to go as far as the, the house is concerned. But what the supporters are saying is this is going to give families finally a chance to buy, right? It's going to free up some of the, the inventory that is out there. The critics actually say it could reduce the housing supply. It could drive rents higher, it could drive prices higher, so on, so forth. So we're going to break this down and see, okay, what kind of impact did this really have? And your home's value mortgage rates, the housing market, everything in general. You know, guys, it was, it was a, it was a big deal when this bill passed today. And many didn't think that it was going to happen. And many thought that it was, it was going to not get through the Senate or the house. And of course, it got through the Senate today. Pretty, pretty big majority matter of fact, 89 to 10 was the vote. And so, you know, it's originally designed to increase single family housing supply. That's where the president came up with this idea, going to give local governments incentives to allow more building, but the headline again, it's going to restrict the large investor.

6:10And so what we're going to be talking about kind of debating is, does this marketplace, does it need the large investor, these big institutions that are now publicly traded, you know, worth billions and billions of dollars and that own thousands and thousands of homes? What happens if they're out of the marketplace? So it's going to be fascinating topic right here. Yeah. And what's interesting too is, you know, this bill, I feel really just addresses the symptom, which is the investors, not the problem, which is lack of inventory. And that's kind of how I feel about it. The whole concept of it kind of bugs me. Does it will get a good yeah, yeah, John, I think, you know, to add to Aaron's point, I, you know, my dear friend, your dear friend over at the Builders Association would tell you that, but they've been trying now for years to get land released from the federal government. And they can't, you know, so I mean, if you're, you know what I'm saying? I mean, I would actually solve some issues right there. That's why I say that I agree with Aaron. This is part, this is just, this is back team. This is not a cure at all. That the cure, I mean, we talked, when this, before this even came up, we talked about,

7:13hey, what about getting rid of the low level price adjusters that Fannie and Freddie have added since, oh, eight, all that billions and billions of dollars that get taken away from the consumer. So there are other ways we'll get into it. But it'd be interesting to maybe sometime get Dan on here and shed some light about the building community just in northern Nevada and what, yeah, I think for four or five years now. Oh, yeah, it's not longer, yeah, yeah, no, it's a good point to wait. All right. Well, a lot of things obviously in the housing world, a lot of things going on in the stock market. Let me get the bad news out of the way and then I'm going to build up to what happened to going into the close today. So it was a telephone right from the get go. Pre-market, we were down two to 300 points, nearly 400 points. Matter of fact, right before the open, we were down almost 500 points. So you know, it was going to be a rough one. What we didn't get today that we've received these last couple days is kind of by the dip mentality. These last few days, when we've dipped between five to 700 points, the buyer stepped in. They tried doing that again today, but the sellers absolutely dominated every time it was the whack-a-mo game. Once again, every time the stock started to rise, the hair came, the sellers,

8:14and they just pounded this thing down. I think now, guys, I'm starting to feel, and again, this is this from experience, I'm starting to feel two different things. Number one, I'm starting to feel fatigue, meaning investors are getting very fatigued with the oil and the war headlines. They need to throw the private credit headlines into there. Then you add in the other issue, which is what I said a couple days ago on the show, and I said, you know, I hate to say this, but here's the reality. We have not had one of these big, what we call a flush on Wall Street, and a flush is designed to scare all of you that are listening to us right now out of the market, right? This is where you have in a very, very abrupt thousand, 2000, some crazy massive sell-off that last literally, in most cases, just a few hours or a few minutes sometimes, but it's enough to scare investors, they dump their stocks, institutions jump in, they buy the stocks, the market runs back up. And in most market corrections, you eventually, not always, but you eventually end up having one of these flushes. We have not had that. This has kind of been the splinter in the underneath the nail bed type of market conditions these last few weeks.

9:18It's just been painful. You start to pull the splinter out and your finger feels a little bit better, meaning the market goes up for a day, and then the splinter goes right back in, market goes back down and you're in pain. That's what I'm starting to feel right now that we're seeing going on with investors. It's just a lot of pain at this point. They're selling a lot of things. Not everything is going down, but you know, you look at this whole oil situation, you have the airlines just getting taint. I mean, Southwest air today down seven and three quarters, you have the truckers, old dominion down, $12.54, a little over six and a half percent loss, cruise lines down almost eight percent, Tesla down three percent. I mean, the list goes on and up and you know, again, they kind of throw the baby out with the bath water. They back to the liquidity issue that a lot of people are not really paying on that's potential to, but that's why gold prices today, down $53.40. Guys, in a day where the market did what it did, you should not see gold prices go down. If things were acting normal, you would see gold prices surge, but they're not. Let me tell you when we come back from the break, what we did, give you some more of the reasons behind it. And then we're going to get into our topic today. The investor ban is

10:19they're going to fix the housing market or is it going to break it? The boys will let us know. Let's turn it over to Kristen Snow. She's in the right now traffic center. Hello, Kristen. Welcome back to the John Sanchez Show and News Talk 780 KOH with Dwight Malar to von Q home loans and Aaron Clark of edge reality. All right, we're going to be getting to our topic again, big investor ban. That's what the government wants. They want the big boys. They publicly traded companies that came in and swooped up thousands and thousands of homes after the financial crisis that if you owe them more than 350 homes, you can't buy anymore. Yeah, past the Senate today. We're going to talk about the pros and the cons of this. And again, she'll find out we're saying not much likelihood. It's going to pass the house at least under its current version. All right, so let's get the the news out of the way today. Like I said, it was a tough session going now right from the pre market all the way into the closed. We finished down 739 points on the Dow 1.56% loss to a close of 46,677. Then as that last 404 points, 1.78% closing at 23,1111. And the S&P gave up 103 points 1.52% to 6,672. And I want to throw the Russell 2000,

11:24the small caps in there. That was a 2.12% loss. So this is the analogy I was saying before we went to the break where it's like you get a splinter underneath your fingernail. It's just it hurts and then you pull it out and it still hurts and then you get another one. That's the pain that investors are starting to feel. I'm starting to feel that investors are really starting to get into the investor fatigue mode where they're trying to sit here and go, how much more is this going to happen? Because what we're seeing happen guys is a lot is it's a 1% loss today. It's 1.25% tomorrow. So it's not that big flush that I was saying in the last segment, but it's 1% 1% 1.5% and before you know it, you really find yourself in a situation where we're in a correction mode, we're down 10%, very easily. Yeah, that by paper cut, yeah, by splinter. You're today. It's amazing. You say that it's we've been talking about this now probably for a couple of years now is just the consumer is fatigued on everything, housing, groceries. Now you gotta add this to it, you know, there's just so much, you know, the bandwidth of most people, just it's hard

12:26for them to sort it out, to sort the nuts and bolts out of everything around them. So you're right. You're absolutely right. You can dig off the plate. The easier it makes them to, you know, to kind of find some decision points. You bet. Here's what we said on a year today basis. I used to say this to Friday, but let's bring it out for the year that I was down 2.9%. Nasdaq's lost 4% S&P 500 negative 2.5% and Russell, which was up at our best level. We're up a little over 6% if I remember right right now. We're up just three tenths of 1%. So again, nothing, you know, significant at this point, but it starts to add up like I said, these these losses over and over again. All right, let's hit the commodity side big, strong day for oil. 84 cent rise, 95 dollars and 42 cents. So let's bring you up to the date on the latest headlines. I told you yesterday that news services were reporting that a few tankers were being hit by drone shrapnel, causing some damage. Okay, we come into today evidently more starting to happen. We had the

13:28the new Khomeini indicate that he wants to keep the straight clothes, which again, all that means is he's threatening to do more damage to any ships going through there. Then we had the secretary Chris Wright, who just the other day came out on X and said, oh, yeah, we're going to start escorting vessels through the straight of hormones. Well, he came out today and said, well, he ended up correcting himself. Remember about an hour later, the White House corrected him, I should say. He said, yeah, we're going to start Escorts. Market got excited. Oil prices went down. Then the White House came out about an hour later and said, no, don't know what the secretary is talking about. That's not the case. Now we fast forward to today. Chris Wright cannot told CNBC today that the US Navy is not ready to escort tankers through the straight, though it aims to be able to do so by the end of the month. All right, guys. So there's, there's the latest of what happened today. We're still reeling. I know Aaron, you get a laugh. We're still reeling with what happened yesterday. So yesterday, remember, as I discussed on the program, the international energy agency announced 400 million barrels of strategic petroleum reserves of the 32 countries around the world. We're going to be released. Okay. So they're going to open

14:31up the spiket, but I was critical of that yesterday. And I said, wait a minute here. We don't know who's doing what? In other words, how many barrels each country is doing? We didn't know what the US was going to do. Well, until later in the in the evening. So 400 million barrels largest ever ever in history, largest release from strategic petroleum reserves ever in history. Okay. So it's a monumental event. But again, devils in the details, when's it going to start? What kind of oil is going to be released? I mean, all these different situations. Now later in the day, the United States government came out and said, okay, here's what we're going to do. We're going to release 172 million barrels of the 400 million barrels. That's a significant sum. Okay. But here's the downside. Again, devil on the details. It's going to take 120 days before they start releasing it. Guys, we're talking four months. Can you imagine four months? Now let's use the United States.

15:33And again, this news came out after the show yesterday. Let's use the United States as an example. Okay. If it's going to take to US four months, does that mean it's going to take everybody else for their, you know, the 200 and, you know, 30 million barrels. Is it going to take them four months? I mean, where would oil prices be at that point? And this is what I said yesterday on the show. I said, look at this is great that they announced that. However, I did the math and I said, look at you've got 400 million barrels that these countries are going to release. We're losing 20 million barrels a day because the street is essentially closed. Okay. 400 divided by 20 is 20. So that means we've got 20 days. If the oil was released today, the 400 million barrels released today, 20 days four months from what? There you go. That's great. Go ahead, Mr. Clyde. So really, what difference does it make? But now if we use, hold on one second. Now if we use the US as a proxy, again, saying it's going to take the US 120 days before they can release anything. How long is

16:35it going to take these other countries? All right. So once again, job boning seems to be, I'm going to go back to my investor fatigue comment. Job boning has been saving this market. And I'm talking to the oil side as well as the stock market side. It's been saving it for the last week or so week, week and a half. I don't think what I saw today with oil prices rising. I don't think today or I think today was kind of the turning point where investors went, show me the money. The old during McGuire line, show me the money. This kind, they're like, show me the oil. Show me the oil. Don't just tell me, show me the oil and no countries doing it. Well, I was just going to say, John, I mean, just even go down 30 days from now on what you were just saying. I mean, commerce is just going to stop. I mean, oh, it already started. Yes. What is it in California? You've got seven 83 gallon in some places. Yeah. I mean, at some point in time, people are just going to say, it's easier for me to stay home than, I mean, yeah, I don't get the oil. I'm going to give you guys a little bit of

17:43of naval knowledge when I studied to get my Coast Guard captain's license, I had to study about this thing called the Jones Act. Well, I hadn't heard about it for a number of years since I studied for the test. I heard about it today. Trump administration came out and said, we're proposing, I should say, we're proposing to eliminate the Jones Act for 30 days. I mean, maybe gone, what the heck's the Jones Act? This isn't that guys that goes back to 1920. So, it's over a hundred years old. It was an act that was written after World War I with this asset. And this is, this is national law. What the act says is, if you want to transport any goods from one US port to another, you have to use a ship that is flagged in the US. It was built in the US. It was, or it is manned by a US crew. So in other words, it's all US. Trump came out today and said, we're thinking about eliminating that for 30 days. What does that mean? That means every Tom Dick and Harry foreign vessel can come into our country and transport whatever the product is

18:46from one US port to another. And the logic is, I found a study at JPMorgan did back in 2022. And they said, and again, this was in 2022, they said by eliminating the Jones Act. And we've done it just a couple of times, and I'll call it the last 20 years, it would save the consumer 10 cents a gallon because you're going from basically one East Coast port to another East Coast port. So that was another thing that the market went big for you deal. Yeah. Number one, we don't understand what the Jones Act is, but you know, it's only for 30 years, you're just considering it. And really, is it going to make that big a difference in the price of oil? I don't know. But is that a scary thought knowing that we can have Chinese vessels? We can have any vessel flag anywhere from around the world come into our ports. The US shipbuilders guys, the US port, right now, they are furious at this. They are fear because I'll tell you, you know, knowing Marin or law, this is a prize act that no one wanted to give up. It was, I was honestly very shocked that the president came up with that idea today. So we'll see. But that's that's the latest kind of dangling

19:48the carrot out there that they're working on something. So thank goodness that they're doing that. But I still don't see anything that's really going to call these oil prices down. I really don't. All right. It's turned over to Jackson. Welcome back to the John Sanchez show on News Talk 780KOH with Dwight Malarter on Q home loans and Aaron Clark of edge reality. All right. Once again, we finished down 740 on the Dow 1.56 percent loss. Nasdaq gave up 404 1.78 percent. S will be lower by 1.5 and the Russell 2000 declining 2.12 percent. Another strong day for oil overnight. I should, I failed to mention this overnight. We did touch a bid over $100 a barrel which we hadn't been at in quite a few days. We closed at $95.42. A $8.84 or $0.40 loss on gold to $5.126. Seven basis point increase on the 10 year at a yield of $4.27. Dwight, how do we do on the 30-year mortgage or dare I ask? Yeah. No, don't ask. But let me put it in perspective, John. I don't like words like spike in the commentary, right? You know, rates spike. But anyhow, we were a week and a half ago, John, we were bragging about 5.99. We broke that six. Today, you're up 11 basis points,

20:51which is big in one day. Two two price changes for the worse. 6.35 on the 10 year. Matter of fact, John, you're 15 now. Is it 5.95? You're only five basis points away from the 15 year going back over 6. It's been in the 5s for so long. As you've said, as oil goes, so do the rates. Well, again, we got to watch this liquidity squeeze, guys. If this private credit situation, as we discussed in the first segment, if the private credit situation worsens, and liquidity continues to squeeze investors, you're going to see them continuing to sell bonds. And that, of course, has an inverse effect to the yields. Yields go up. The bond price comes down as the selling pressure exaggerates. Dwight, you got a lot of forces against you right now. Kind of like the stock market. So yeah, misery loves company, my friend, misery loves company. All right. Let's get down to our day's topic again. We had a very interesting situation and fold out of Washington today. And I think this, I think this was a shock to a lot of people. So the Senate passed the biggest housing affordability bill that we have ever seen. Well, let me phrase that 30 years is what they're saying, but this is called since we've ever seen it.

21:54It's got a brand new controversial new rule. Remember, this was this idea was floated by the president and what this is you're going to find out could ban large investors from buying single family homes. So we got this argument going on. Now, I just want to be real clear with everybody this past the Senate. They're saying this version is not going to pass the house. The house has its own version. So as usual, if this thing doesn't die, then they'll come together and take a little bit of the house aside, a little bit of the Senate side and go for there. But bottom line is, let's start to discuss what happened. So as I said earlier, it was a big, big victory, 89 to 10. It was the vote. So what this is designed to do, as I said, it's going to increase single family housing supply. It's going to give local governments incentives to allow more building, but it's going to restrict large builders. Now, remember, we have a number of large builders out there, invitation homes, American homes for rent, tricon residential, blue rock home trust. Those are just a couple names that a lot of people know about. Those are publicly traded companies that again went out. They gobbled up thousands and thousands of homes when the housing crisis happened. I know eight, no nine, and then bundled them together, created a publicly traded company,

22:58which do I do you remember? Cory and I predicted that exact thing to his guy. I remember when Cory would share his stories. I'm sure you heard him too, Aaron. You know, where he was getting calls, you were probably getting calls from big institutional investors saying, hey, are we going to want to buy, you know, whatever, 100, 200, 300, 500 homes, whatever it was. And and Cory and I both said, they're going to they're going to bundle them up. They get a big enough. They're going to bundle them off. They're going to sell them off to Wall Street and sure enough, they did exactly that. So what we're going to discuss now is could this make the housing market worse from a supply and demand standpoint, etc. So Aaron, let's kind of talk about let's get the negatives, right? So we're going to show you some negatives and show you some positives here. Let's talk about could this kill the build to rent housing? I mean, I think you totally have that potential situation because if these institutional investors can't come in and and focus on housing purchases, which they've been doing, which remember, the return on investment for them is the funding for increasing building projects and things like that, which would include

23:59those those rental housing markets. Let me see them all over town popping up kind of a new thing, but they're gaining traction fast. Well, yeah, stop right there. I'm glad you brought that up. So a lot of people are not aware of that. So there are housing tracks being built not to be sold, but to be rented by some very very large national development. Correct. It's like an apartment complex, but instead of them being condo style units with shared walls, they're individual homes within a community. Some of them will have clubhouses and things like that, just like apartment, but you still get that vibe and feel of a single family residence. So remember that like I was saying earlier that it addresses the symptom, which is the investors, but not the problem, which is the lack of supply. So if you if you steal the investor's potential of coming in and dumping money into the market of housing, then what's their incentive to continue to grow the housing side on anything? Whether what was we're going to just yeah, but as we're going to discuss the the counter argument is now it's going to open up the housing market for the retail all the shoes that were since we're

25:00talking investors, the retail investor, right? The guy or guy that wants to go buy that first family rental, maybe a small duplex, whatever the case is and get into the housing game. Now they're going to go, Hey, we're not competing against the big boys of Wall Street. We can come in and start to do that now. So well, and I think that's the that's the surface assumption. Yes, we will see because I think instantaneously if this were all to come together in a year first year or two, we might go, Oh, it's working. But as time goes by and those institutional investors are dumping inventory and things like that and they're pulling out of housing projects and markets, we're going to go back to the original issue, which is going to be worse, which is the lack of supply. You want to fix the problem. You've got to start at the heart of the problem, which is supply, supply, supply, supply, ADUs, multifamily, all that stuff. You have to increase that. The argument, of course, again, those that are against this saying, wait a minute, it's going to reduce rental availability. We know we have a rental challenge in a lot of a lot of states around the country. And most importantly, it's going to put rents higher. As we said, you said,

26:01why did it to begin in the show give you full credit? The consumer is stretched, right? You tell them because now the inventory problem is going to get even worse. Now rents are going to go higher. Landlords are going to love it right here. I mean, this is going to, this is really going to make it look good to be already salivating. There are already something that's right. That's right. John, there was nothing, in my opinion, there was nothing proactive in this. Nothing about acquiring land, giving land, selling land to the states, you know, beating on the, you know, local municipalities and counties, you know, to keep their hook up fees and all that. All this was, it's defensive. I mean, we're just, it's, it's reactive. It's too. I'm glad you said that because here's my opinion of the bill. And again, this is just the, the Senate bill. This is a pacifier for the public. This to me is a prime example of politicians saying, let's, use my term, let's job on. Let's, let's public think that we're doing something great. We're looking out for them. We're going to open up inventory. But as we all know, a lot of politicians don't think very clearly or they, they think with their donation checkbook, they're in, in a

27:02reality, I mean, you two are both experts in this area. It's not going to help. Right, Aaron? It's going to make the problems worse. Right. And if you were to actually pull the public and you say, hey, how many homes, what percentage do you think of homes are owned by institutional investors at own 350 plus? You're going to get an overwhelming response that's going to be 15, 20, 30, 50, 30, 30, what's the number of dilemmas? Yeah. So we're going to think it's going to create a huge massive change in the market when reality, it's like three to four percent. That's it. Yeah. Do I have houses or homes nationwide or owned by institutional investors? What is that three, four percent? Yeah. There you go. So we're, we're attacking the three to four percent problem. We're, we're attacking these companies. And again, it's spitting on the wind in the big schema themes, three to four percent of homes that are out there. They're not the, I love what you said, Aaron, I'm going to repeat you. They're not the problem. The problem is lack of inventory. Then the problem is they need, they should be spinning this time to figure out

28:02ways to again, free up some of the federal land that is out there that, that, that, you know, there's a bunch of into space for us. Yeah. Yeah. Yeah. Exactly. Loan incentives. I mean, all there's a million things they get. John is like eating 25 cookies a night and I'm going to give up one. You're right. Yeah. Yeah. There you go. Good analogy. Give up. I'm hungry. Now I'm hungry. I'm wrapping up a Christmas snow that right now traffic center. Crystal. Welcome back to the John Sanchez show. A new stock 780K, which were there in Clark of Italy. Your phone number, sir. Don't wipe my large of on cue home loans. Your phone number, sir. Yes, sir. Thank you, fellas. All right. We're discussing this bill that passed the Senate today that wants to basically ban any of these large institutional home builders, investors, et cetera, from owning more than 350 homes. I want to clarify one thing before we run out of time. If you, if you go and read the bill, there's kind of, here's the gist of it. If you own three, if you're again, one of these large institutional investors, you own 350 or more single family homes, you're done. Okay. You can't do that. They don't want you to own more than 350, but companies that add to the housing supply

29:06through building or serious renovations would be able to own more homes in the 350, but would need to sell those homes after no more than seven years. So there's a little caveat there. Okay, boys. Now, again, this past the Senate, they're saying that the house version is completely different that this current Senate bill will not go through the house. We'll see what happens. I don't even know when the house is going to vote on this. I imagine, you know, probably fairly soon, if the Senate just voted on this, Aaron, let's come back to you as the realtor of the group, which your advice? Let's look at two scenarios. Let's look at the scenario that this thing passes. Let's say, let's say the house version is very similar to this one, right? You're capped at 350 homes. Look in your crystal ball. Where are we looking at as far as home prices, increasing, decreasing, rents going up, rents going down. I mean, I think you're going to see increase in home pricing, and I think you'd see increase in rental pricing if both bad for the art prevented. Yeah. It's why I'm the hell with the government, upon a passable. That's bad for the consumer because it's perception is reality. And to people that don't understand what this means,

30:09it sounds amazing on the surface. It sounds awesome as they listen to this show. That's exactly right. And Dwight, go back to your point for those that may have just joined us for this last segment. How many homes in America are owned by institutional investors? Nationwide, which is three to four percent. So drop in the bucket. Yeah, you know, if those home prices go up, we already know the mortgage demand is going to go way down. Yes. You know, now we're going to now we've got a whole other problem. We've got a whole nother mess. Yeah. They're going to have to make them rebuy the houses again. They were trying to get rid of the politicians for creating another mess. They have politicians. If this thing goes, we're not going to get too excited about it. We wanted to bring it to you. As Dwight said, this is broke today. So we we jumped on this story for you because again, so many of you do own real estate, whether it's obviously your primary or the rental side of things. What's kind of your final advice for someone right now? I'm going to take the words out of your mouth. I think you're going to say wait and see, right? Because obviously we don't go with that. As far as it goes, wait and see again, if you're doing something, if it's within

31:09the budget, none of this stuff should impact your decision. Keep moving forward. If not, and you feel uncomfortable, then wait. There's nothing that hurts you either way. Yeah, beautiful. Dwight, how about you? Yeah, I agree. I think, you know, we'll figure it out if it gets to that point, but yeah, I wouldn't change my plans because that this has been introduced. And so many people supported it up for reelection, I'm sure. Yeah, yeah. No, it's that's a very, very good point. Well, we will see what happens with it. We'll keep you updated more that we hear. I do want to throw this in very quickly. Tomorrow is a really important day from an economic standpoint. We have the Fed's favorite measure of inflation, which is the PCE prices. We have those come out tomorrow. We've got the second read of the GDP number for the for the fourth quarter of last year. They will see if we get another revision. Remember, you get three reports. This is going to be the second one. So we'll see exactly what what that number shows. But this PCE numbers a very important one. And then we've got University of Michigan consumer sentiment numbers to pull them in our report. This is that survey of consumers. And it's for the month of March. So very

32:11interesting to see what the consumer is feeling about everything that's been going on. So real important day tomorrow. I'm going to be busy. Don't miss the show tomorrow night. Thanks, boys. You did a phenomenal job as always. And thank all of you for listening. We'll see you tomorrow on the John Sanchez show. God bless John Sanchez is a registered investment advisor. And the opinions expressed by Sanchez, gone capital management LLC on this show are their own and do not reflect the opinions of news talks 780 or its parent company, cumulus media, all statements and opinions expressed are based upon information considered reliable, although it should not be relied upon as such. Any statements or opinions are subject to change without notice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments or investment strategies. Investments involve risk and unless otherwise stated or not guaranteed. Information expressed does not take into account your specific situation or objectives and is not intended as recommendations appropriate for any individual listeners are encouraged to seek advice from a qualified tax legal or investment

33:13advisor to determine whether any information presented may be suitable for their specific situation. Pass performance is not indicative of future performance. Dwight Malard NMLS ID number 241259 a licensed mortgage loan officer with Highlands Residential Mortgage Limited and Equal Housing Lender NMLS ID number 134871. The information shared on this live broadcast is for general information purposes only and does not constitute financial or mortgage advice. Listeners should consult directly with a licensed mortgage professional for guidance tailored to their specific situation. All loans are subject to credit approval and program guidelines. Not all applicants will qualify. Loan terms and availability may vary by state and are subject to change without notice. Highlands Residential Mortgage Limited is licensed in multiple states. For a full list of state licenses and disclosures please visit HTTPS slash slash www.highlandsmortgage.com backslash licenses backslash. The views expressed during this program are their own and do not necessarily reflect those of Highlands Residential Mortgage Limited