Friday, December 19, 2014
PLACERVILLE, CALIFORNIA
99 CENTS

Realtors advocate housing finance system overhaul

By
From page HS6 | November 01, 2013 |

Subscription Required

Thank you for reading the MtDemocrat.com digital edition. In order to continue reading this story please choose one of the following options.

Current Subscribers
If you are a current subscriber and wish to obtain access to MtDemocrat.com, please select the Subscriber Verification option below. If you already have a login, please select "Login" at the lower right corner of this box.

Subscriber Verification

Special Introductory Offer
For a short time we will be offering a discount to those who call us in order to obtain access to MtDemocrat.com and start your print subscription. Our customer support team will be standing by Monday through Friday, 8am to 5pm to assist you.

Call and Save! (530) 344-5000

If you are not a current subscriber and wish not to take advantage of our special introductory offer, please select the $12 monthly option below to obtain access to MtDemocrat.com and start your online subscription

Help?

On behalf of the leading advocate for homeownership and housing issues, NAR President Gary Thomas recommended essential reforms to the current housing finance structure that will benefit consumers.

“Realtors support a stable secondary mortgage market with strong, reasonable lending standards and access to credit. We believe that the current system can be transitioned into a marketplace that is bound by an explicit government guarantee and a sustained flow of private capital while protecting taxpayers from unnecessary risk,” said Thomas, broker-owner of Evergreen Realty, in Villa Park. “We fear that without the government’s backing, the only mortgage products available in the secondary market for the average homebuyer would not be aligned with their best interests.”

NAR supports the bipartisan Housing Finance Reform and Taxpayer Protection Act of 2013, which provides for an explicit government guarantee and includes many of the elements outlined in the association’sprinciples for secondary mortgage finance reform that NAR presented to the administration in early 2011.

During his testimony, Thomas expressed concern about emerging barriers to homeownership facing middle class and first-time buyers that could potentially derail the housing recovery. “Apprehensive bankers are leery about issuing new loans as a result of proposed risk retention rules and ability-to-repay requirements that are set to go into effect next year,” he said. “At the same time, rising interest rates and growing student loan debt is limiting consumers’ access to credit and contributing to an already tight lending environment.”

Realtors urged policymakers to prioritize strong underwriting standards over high down payment requirements that would put homeownership out of reach for otherwise creditworthy buyers. Rather than adopt a complex Qualified Residential Mortgage rule, NAR believes the agencies should follow the strong standards set by the Consumer Financial Protection Bureau for the related Qualified Mortgage Rule.

Thomas warned against other proposals that would restrict lending, such as lowering loan limits and putting private capital in a 10 percent first-loss position, which could inhibit private investors from participating in the secondary mortgage market, especially during periods of economic distress.

“Our goal is to help Congress, and our industry, design a secondary mortgage market model that will serve America’s best interests today and into the future, and ensure a strong housing market and economic recovery,” said Thomas.

Comments

comments

  • Recent Posts

  • Enter your email address to subscribe and receive notifications of new posts by email.

  • .

    News

     
    Downtown upbeat about Christmas

    By Wendy Schultz | From Page: A1 | Gallery

     
    Taking a chance on Logan

    By Wendy Schultz | From Page: A1 | Gallery

    No deal on EID censure plan: Election shift eyed

    By Dawn Hodson | From Page: A1

     
    Legal Professionals Association seeking more members

    By Dawn Hodson | From Page: A3 | Gallery

    Most offices closed for Christmas

    By Democrat Staff | From Page: A5

     
    More info on lockdown

    By Cole Mayer | From Page: A14

     
    Caltrans praised for King Fire Hwy 50 work

    By Cole Mayer | From Page: A14 | Gallery

    Man walks into traffic, hit by car

    By Cole Mayer | From Page: A15

     
    .

    Opinion

    Gruber backpedals; time for a Mulligan

    By Mountain Democrat | From Page: A6

     
    Billingsley’s Bullets: An unwelcome visitor arrives

    By Bob Billingsley | From Page: A6

    The weekly Daley: A Christmas letter

    By Chris Daley | From Page: A6

     
    .

    Letters

    Law enforcement

    By Letters to the Editor | From Page: A7

     
    How times have changed

    By Letters to the Editor | From Page: A7

    Head Start grant results response

    By Letters to the Editor | From Page: A7

     
    Voting while enlisted

    By Letters to the Editor | From Page: A7

    Holiday season safety

    By Letters to the Editor | From Page: A7

     
    .

    Sports

    Union Mine depth does in Grizzlies

    By Jerry Heinzer | From Page: A11 | Gallery

     
    First and goal: Home for the holidays

    By Mike Bush | From Page: A11

    Upper weights tilt match for Bruins

    By Mike Bush | From Page: A11 | Gallery

     
    Roundup: Dec. 18, 2014

    By Democrat Staff | From Page: A12

    New snow totals reach three feet

    By News Release | From Page: A12

     
    .

    Prospecting

    Coloring contest winners wow judges

    By Mimi Escabar | From Page: B1 | Gallery

     
    Things to do: Dec. 19, 2014

    By Democrat Calendar | From Page: B2

    Let there be lights

    By Mimi Escabar | From Page: B2 | Gallery

     
    Caboose leads the way

    By Pat Lakey | From Page: B3 | Gallery

    Take a break for 5k and 10K walk/run

    By News Release | From Page: B3

     
    ‘Dirty Dancing’ comes to Broadway Sacramento

    By California Musical Theater | From Page: B5

     
    InConcert captures holiday spirit

    By Inconcert Sierra Foothills | From Page: B5

    Railroad Museum to debut exhibit

    By California State Railroad Museum | From Page: B6

     
    Book signing at bike shop

    By News Release | From Page: B6

    Heavenly Holidays illuminates the season

    By Heavenly Mountain | From Page: B7

     
    Smashing Pumpkins makes a stop at the Warfield

    By Jerry Heinzer | From Page: B7

    Carson Valley Inn offers December dining choices

    By Carson Valley Inn | From Page: B9

     
    Mrs. Claus rides the Western Railway

    By Western Railway | From Page: B9

    Anthony Friedkin photos on exhibit at de Young

    By Fine Arts | From Page: B14

     
    .

    Essentials

    Lake levels 12-18-14

    By Michael Raffety | From Page: A2

     
    .

    Obituaries

    Dorothy V. Klatt

    By Contributor | From Page: A2

     
    Judy Hinrichs

    By Contributor | From Page: A2

    Al Marion Brandalise

    By Contributor | From Page: A2

     
    .

    Real Estate

    Early Christmas gifts for housing

    By Ken Calhoon | From Page: HS4

     
    A look back: Lessons learned in 2014

    By Marni Jameson | From Page: HS8

    Passing the gavel and celebrating 2015

    By Noel Stack | From Page: HS18

     
    .

    Comics

    Sudoku

    By Contributor | From Page: A13

     
    Rubes

    By Contributor | From Page: A13

    Long Story Short

    By Contributor | From Page: A13

     
    TV Listings

    By Contributor | From Page: A13

    Speed Bump

    By Contributor | From Page: A13

     
    Tundra

    By Contributor | From Page: A13

    Shoe

    By Contributor | From Page: A13

     
    New York Times Crossword

    By Contributor | From Page: A14

    Horoscope, Sunday, December 21, 2014

    By Contributor | From Page: A14

     
    Horoscope, Saturday, December 20, 2014

    By Contributor | From Page: A14

    Horoscope, Friday, December 19, 2014

    By Contributor | From Page: A14

     
    .

    Home Source

    Early Christmas gifts for housing

    By Ken Calhoon | From Page: HS4

    A look back: Lessons learned in 2014

    By Marni Jameson | From Page: HS8

    Passing the gavel and celebrating 2015

    By Noel Stack | From Page: HS18