NAR Supports Administration Efforts on Rate Freeze as Important Step in
Protecting Homeowners
WASHINGTON, Dec. 6 /PRNewswire-USNewswire/ -- The National Association of
Realtors today expressed support of President George W. Bush's efforts to curb
the increase in foreclosures due to irresponsible lending practices and
complicated mortgage products by allowing modification of certain loans or
freezing the interest rates for up to five years.
"The dream of homeownership should not turn into a family's worst nightmare,"
said NAR President Richard Gaylord, a broker with RE/MAX Real Estate
Specialists in Long Beach, Calif. "As the leading advocate for housing issues,
NAR has been working with Congress and the administration to protect
homeowners who may be facing foreclosure as the result of predatory lending
practices and as the interest rates on many subprime loans reset. The loan
modification program introduced by President Bush and U.S. Treasury Secretary
Henry Paulson is a good first step in helping deserving families keep their
homes."
NAR has been working with Congress throughout 2007 to modernize Federal
Housing Administration programs that will once again make the FHA a viable
mortgage product and help protect many current and future homeowners by
offering a secure alternative to subprime loans. NAR has also been pushing
Congress to reform Fannie Mae and Freddie Mac and increase their conforming
loan limits, which will not only help home buyers but also will help improve
liquidity in the lending industry. "We are pleased that the administration has
taken action today and are hopeful that Congress will now move quickly to
approve FHA modernization and GSE reform," Gaylord said.
Earlier today Senate Majority Leader Harry Reid, D-Nev., tried again to pass
the FHA modernization bill supported by the administration, but the motion for
unanimous consent was blocked. Sen. Reid and his staff have met with Realtors
and agree that enhancing FHA would help improve the housing market and protect
homeowners and many who wish to own a home. "We hope that the Senate will see
today's action by President Bush, Secretary Paulson and Senator Reid as a
catalyst to change and implement important reforms promptly," said Gaylord.
NAR participated in meetings with Secretary Paulson and other industry
influentials that he assembled to focus on the problem and finding a workable
resolution. In addition, NAR has strongly communicated the need to change the
IRS code that permits people who have been forced into foreclosure or short
sale to pay income tax on the loan amount that is forgiven. Also known as the
phantom income tax, NAR has called it an unfair burden and applauded the House
of Representatives for passing legislation to change this. At the same time,
NAR is pushing the Senate to act quickly to enact similar legislation.
Today's announcement by the president is not a bailout, but is designed for
borrowers who have been making their payments on their existing loan. The
administration estimates that 1.2 million families could be protected under
his plan.
"The president has offered the American people an early holiday gift today. We
hope Congress will also help make the holidays happy for millions of Americans
by doing their part and move swiftly with FHA modernization, GSE reform and
elimination of the mortgage cancellation tax," said Gaylord.
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.
Information about NAR is available at www.realtors.org. This and other news
releases are posted on the Web site's "News media" section in the NAR Media
Center.
SOURCE National Association of Realtors
Mary Trupo of the National Association of Realtors, +1-202-383-1007,
mtrupo@realtors.org
