Healthy Housing Recovery is Central to any Future Economic Strength
Restoring and stabilizing the strength of the housing marketplace is crucial to an overall economic recovery, in a white paper recently make public from the Federal Reserve. Numerous issues and suggestions outlined in the release buttress key principles set out by the National Association of Realtors® in helping revitalize the housing economy and industry.
This recent white paper, The U.S. Housing Market: Current Conditions and Policy Considerations, appeals for increasing lending to responsible home buyers and additional mortgage refinancing, short sales and loan modifications, to help reduce the increasing glut of bank owned homes and help in stabilizing and revitalizing the real estate industry; an approach recommended for some time by NAR in helping jump start a housing market recovery.
Being the nation’s number one advocate for housing and homeownership issues, NAR is well aware that a healthy recovery of the housing marketplace is central to any future economic
national strength,. Furthering access to affordable real estate loans for qualified buyers and investors along with aggressively going after additional short sales and loan modifications is
paramount in helping to reenergize the real estate market and stimulate an economic recovery."
Mortgage credit has been reduced too far since the housing downturn. In a report by called the 2011 NAR Membership Profile, in which 34 percent of the Realtors® stated that the most significant factor in keeping their clients’ capability of buying a home down was the obstacles in obtaining a loan. While NAR is supportive of strong , responsible underwriting guidelines, unnecessary tight credit constraints are keeping a large number of qualified potential home owners from buying homes, which would be a big help in absorbing excess foreclosure home inventories.
Qualified home buyers continue to have troubles obtaining affordable home loans in spite their proven capability to make the monthly payments, Increasing financing opportunities for qualified buyers could go a long way in reducing the inventories of distressed properties, reduce the negative influence those homes create in the local marketplace and re-establish neighborhoods along with vibrant housing markets .
To help reduce further increases of foreclosure inventories, NAR is also urging lenders to become more aggressive in modifying loans and help keep families that are struggling in their present homes. Substantial reductions in monthly loan payments will allow more families keep current on their loans and let them stay in their home, diminishing the impact foreclosures have on neighborhood home prices.
For homeowners who cannot to keep up with their mortgage payments, NAR is urging
lenders and loan servicers for faster approval of short sale offers which are reasonable so these homeowners can avoid foreclosure. The existing short sale process as we know it is inefficient and time-consuming and a great number of potential homebuyers are walking away from these sales.
Short sales along with loan modifications help in stabilizing neighborhoods along with home values, and help in limiting losses incurred by taxpayers lenders, the federal government, which is good deal for everyone.
The Federal Reserve paper also discussed the conversion of foreclosed properties to affordable rental units. NAR supports cutting down the barriers that keep owner-occupants along with small investors from obtaining financing, things like opening up the FHA 203(k) program for investors. NAR also strongly believes these endeavors are best when created by local entities which understand the local community challenges along with being more responsive to renters’ needs.
Additionally, NAR is concerned over proposed bulk transfers of distressed real estate and thinks that every attempt should be made to amplify liquidity for homebuyers and small investors as any bulk sales will more than likely result in substantial losses for taxpayers along with an increased negative impact upon housing values.