It is so imperative for each and every person living in the United States to understand what is happening in the current housing industry. No matter who it is, we are all affected by the housing market;, if you are not employed in a field associated with the industry, then you are a current home owner or at least aspire to own a home someday. The health of the economy has been directly related to housing for generations. We need to do whatever we can to support keeping loan limits where they are, help to bring back reasonable lending practices (not requiring a borrowers blood type) and to implement a streamlined process wherein a current homeowner can refinance without ROAD BLOCKS. Understandably, there is very little monetary gain to reduce interest rates for borrowers who are making their payments, however for those that request a refinance there is a responsibility to make that process fluid. We have homeowners who are losing their homes because they are unable to lower their payments with the current lower rates due to lower appraisals and basically no one attentive enough to make the effort to assist. I agree, it is not necessarily a money making venture to lower the rate, but it is certainly less costly to the BIG PICTURE than allowing another foreclosure.
Write, call, email do whatever you can to support keeping loan limits where they are, help to bring back reasonable lending practices, and to require a streamlined process wherein the homeowner can refinance (The current programs did not work, not enough training, too many prohibitive features, etc., etc.)
Nielsen Testifies on Methods for Disposing of Foreclosed Properties
Testifying before the Senate Subcommittee on Housing, Transportation and Community Development on Sept. 20, NAHB Chairman Bob Nielsen urged Congress to take a balanced approach to disposing of the large inventory of real estate owned (REO) properties held by Fannie Mae, Freddie Mac and the Federal Housing Administration to avoid further market disruptions and limit further losses to the government sponsored enterprises and FHA.
Bob told committee members that Fannie, Freddie and the FHA should avoid bulk sales to large investors that have no stake in the neighborhoods in which these properties are located. "Local and small businesses that have a stake in the future of the affected communities should be the driving force behind the disposition of the REO inventory," he said. "This will result in the creation of jobs and the stabilization of neighborhoods." NAHB also urged Congress to extend the current conforming loan limits for Fannie Mae, Freddie Mac and the FHA, which are due to be lowered on Oct. 1. "This is not a time to reduce loan limits as the lower limits will exclude many homes and home buyers from FHA and Fannie and Freddie loan programs, particularly in areas like California where there is substantial foreclosure inventory," said Bob. Given that many potential buyers who lack sterling credit are unable to take advantage of today's record-low mortgage rates, Bob added that mortgage financing terms for home buyers need to be more reasonable than the overly restrictive standards that are currently in place. He also urged regulators to allow modifications to a number of existing federal housing programs, particularly altering rules that restrict or prohibit for-profit investors, in order to effectively reduce foreclosures."With the scale of the problem so large, it is necessary to deploy all resources in both the for-profit and nonprofit sectors," he said. To further help reduce excess inventory, NAHB also offered suggestions for a new investment fund and lease-purchase program. "We support the goals to maximize value for taxpayers and increase private investment in the housing market," Bob said. "Stabilizing home values will improve the balance sheets of financial institutions and will reassure home owners that their biggest asset will retain its value." Read Bob Nielsen's testimony to Congress here. Contact: Scott Meyer (800-368-5242, x8144)