Show Your Support for Fix Housing First

The National Association of Home Builders is desperately trying to push Congress and President-elect Barack Obama to take the necessary measures to revive the American economy. Without a doubt, the struggling housing market is the core of the economic problems, so by focusing efforts on the real estate industry – “Fix Housing First” – the government will be taking great lengths to get us back where we should be in regards to the economy. However, the NAHB cannot do it alone and is asking for a call for action from everyone to help support their plan. Send emails, letters and faxes or get on the phone and leave messages, just tell all 535 members of Congress your story before January 2nd.

Tell your lawmaker:

• How you and your business have been affected by the recession.
• To support a homebuyer tax credit and short-term mortgage subsidy.
• To support foreclosure prevention measures limiting the supply of homes for sale.
• To urge regulators and lenders to provide flexibility to residential construction borrowers who have loans in good standing as they weather the downturn.

NAHB has some significant plans for Congress, and they are very promising if we can encourage our lawmakers to get behind the proposition. NAHB is proposing very aggressive solutions to the economic recession and housing crisis.  First, Congress should build upon the foundation of the underutilized federal housing tax credit by eliminating the repayment requirement; making it larger (between $10,000 and $22,000); making it available to all homebuyers; and extending the eligibility period to December 31, 2009.

Second, Congress should create a federally-subsidized, 30-year fixed rate mortgage for home purchases made in 2009.  Specifically, NAHB is proposing a 2.99 percent mortgage rate for homes purchased before June 30, 2009, and a 3.99 percent mortgage rate for homes purchased before December 31, 2009.  The rate subsidy would only apply to principal residences.  This dual strategy of a homebuyer tax credit and a mortgage subsidy was used successfully during the 1970’s housing crisis, which was fed by excess inventory and falling home prices.

Third, Congress should create programs that prevent additional foreclosures.  Stimulating demand alone is not enough to turn around the housing market.  We need to limit the supply of homes on the market by providing aid for people to avoid foreclosure.

Finally, Congress should urge banks and banking regulators to provide flexibility to builders’ residential AD&C loans as you weather the downturn loans.  NAHB is urging Congress to examine the need for regulators and lenders to provide relief to residential construction borrowers who have loans in good standing by providing flexibility on re-appraisals and forbearance on loans to give builders time to complete their projects.