NAR issues five-point plan for housing
A policy meeting early this month meant a meeting of two of the nation's respected think tanks - the Progressive Policy Institute and Economic Policies for the 21st Century. Due to the continued lackluster state of the housing industry, the purpose of the meeting was to create a list of action items intended to stimulate growth.
Not exclusive to the groups above, the meeting included members of Congress, the media and industry representatives. The outcome was a five-point recommendation sent by letter to President Obama, Fed Chief Bernanke and Congress. Here are the highlights:
Recommendation 1: Do Not Risk Weakening Our Nation's Housing Markets Any Further.
• Re-craft the Qualified Residential Mortgage rule. Act to include a wide variety of traditionally safe, well documented and properly underwritten products.
Revisions recommended by the Dodd-Frank Act would require a 20 percent down payment with stringent debt to income ratios that would prevent many from owning homes.
• Restore higher loan limits. The lower loan limits implemented in September in 669 counties and 42 states, caused sellers to have to lower their prices where FHA, Freddie Mac and Fannie Mae loans are no longer available. This, of course, hurts the housing market further.
• Resist proposals that call for changing the tax rules that apply to home ownership now or in the future. Losing the mortgage interest deduction would not help stimulate housing growth.
Recommendation 2: Restore Vitality to Our Communities and Neighborhoods by Reducing the Foreclosure Inventory:
• Support S170, The Helping Responsible Homeowners Act. This act would remove refinancing limits for underwater homeowners who have been paying on time and eliminate risk-based financing fees charged by Fannie Mae and Freddie Mac.
• Support improvements to the Home Affordable Refinance Program and provide refinancing opportunities to at risk borrowers as an alternative to defaulting on their loans.
Recommendation 3: Open Opportunities for Private Capital to Return to the Mortgage Marketplace to Foster New Demand among Responsible Homebuyers.
• Open up the FHA Section 203k rehabilitation loan program to investors to encourage purchases of foreclosed properties.
• Require Government Sponsored Enterprises (Freddie and Fannie) to suspend investor financing limitations, especially the limit on the number of mortgage loans for any one investor/borrower.
Recommendation 4: Support a Secondary Mortgage Market Model that Includes Some Level of Government Participation.
• Reject proposals that call for full privatization of Fannie Mae and Freddie Mac.
Recommendation 5: We call on the White House to Hold a National Housing Summit to Articulate a New National Housing Policy and Move the Provision of Housing to the Front of the Nation's Domestic Agenda.
"In conclusion, we emphasize again the recovery of the broader economy depends on housing. The last two and a half years have shown that, with housing prices bumping along the bottom, a robust economic recovery will remain exceedingly difficult. The National Association of Realtors stands ready to work with Congress and the Administration to move this 5-point plan to help restore housing and grow our economy."
Due to limited space here, the five point plan could not be re-iterated in its entirety. To read the entire document go to: http://www.realtor.org/government_affairs/five_point_plan.
We will keep you posted on what measures the government may take toward implementing any of these recommendations.
Trust an expert... call a Realtor. Call your Realtor or visit www.cdarealtors.com to search properties on the Multiple Listing Service or to find a Realtor member who will represent your best interests.
Kim Cooper is a real estate broker and the spokesman for the Coeur d'Alene Association of Realtors. Kim and the association invite your feedback and input for this column. You may contact them by writing to the Coeur d'Alene Association of Realtors, 409 W. Neider, Coeur d'Alene, ID 83815 or by calling (208) 667-0664.