Economic Stimulus Package
NAR Challenges HUD and Regulators to Quickly Implement Loan Limit Increases
WASHINGTON, February 13, 2008 -
The National Association of Realtors® has called on both the U.S. Department of Housing and Urban Development and the Office of Federal Housing Enterprise Oversight to promptly implement the higher conforming loan limits for Fannie Mae and Freddie Mac and the increased Federal Housing Administration loan limits that Congress mandated and that President George W. Bush today signed into law.
In a letter to HUD Secretary Alphonso Jackson and OFHEO Director James Lockhart, NAR notes that failing to move quickly to allow Fannie Mae, Freddie Mac and the FHA to increase their loan limits will prolong the nation’s mortgage crisis and make a recovery in the housing market more difficult.
“The importance of immediately implementing the new limits cannot be overstated. Mortgage markets throughout the country need liquidity,” said NAR President Richard Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif. “Our research indicates that the increased FHA loan limits will help an additional 138,000 Americans achieve the dream of homeownership and will allow nearly 200,000 homeowners to refinance and potentially keep their homes.”
In addition, NAR believes that increasing the loan limits for Fannie Mae and Freddie Mac will bolster the housing finance market, which continues to be severely stressed, by providing an immediate infusion of much needed liquidity to the nation’s mortgage market. “While such an increase will not solve the full range of housing challenges, it will play an important role in improving the nation’s economy,” said Gaylord. “We do not have time to waste. Families need mortgage options whether they are purchasing or refinancing to keep their homes.”
An economic impact study conducted by NAR in January estimated that increasing the GSEs’ conforming loan limits would result in as many as 500,000 refinanced loans and could help reduce foreclosures by as much as 210,000. In addition, over 300,000 additional home sales could be generated. “These are real results and can have an immediate and sustainable impact for families across our country,” said Gaylord.
“NAR members stand ready to communicate and educate families in all parts of the country. We stand ready to move immediately upon your implementation. We are ready to do our part in helping families achieve the dream of homeownership as well as keep their homes,” Gaylord said.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of residential and commercial real estate industries.
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