Archive for 'Mortgage loan'

Credit Union Offering Zero Down Mortgages

Navy Federal Credit Union, announced this week its October mortgage closings surpassed $1 billion. This is a record and a coupe for Navy Federal at a time when the REALTOR® Confidence Index (RCI)1,reports that consumers face “tight credit conditions” and challenges in getting loan dollars from lenders. In fact, year-to-date, Navy Federal has made more than $8.3 billion in mortgage funds available to its members.

So, how is it possible for Navy Federal Credit Union to report such substantial mortgage gains, despite a national lending squeeze? Jack Gaffney, executive vice president, Lending, asserts it’s by having both the will and the way to lend.

“Having ample products, competitive rates and specials like offering to pay up to $2500 in closings costs are a must in matching members to mortgages that suit their budget. But by far, being able to offer a “no money down” option is a difference maker,” says Gaffney.

The credit union is one of the few lenders in the market still offering a 100% financing alternative for purchasing a home. The Navy Federal Homebuyer’s Choice Mortgage pulled in $416 million year to date, and the credit union projects near $10 billion in total mortgages booked by year-end.

“For us, huge mortgage success means that we’ve put thousands of families in new homes or placed them securely in their current ones,” says Gaffney, “and, that we’re doing absolutely everything we can to find the exact right mortgage or refinance option to fit our members’ needs. Making homeownership possible is a privilege.”

About Navy Federal Credit Union: Navy Federal Credit Union is the world’s largest credit union with $50 billion in assets, four million members, 227 branches and a workforce of over 10,000 employees worldwide. The credit union serves all Department of Defense military and civilian personnel and their families. For additional information, visit www.navyfederal.org.

1 According to data from the REALTOR® Confidence Index (RCI), September 2012 Edition
http://www.realtor.org/sites/default/files/reports/2012/realtors-confidence-index-2012-10-report.pdf

Contact: Jeanette Mack
Manager, Corporate Communications
Phone: (703) 255-8792
E-mail: jeanette_mack@navyfederal.org

Web Site: https://www.navyfederal.org

Foreclosure Numbers Dropping

Foreclosure

The banks are reporting lower foreclosure numbers for the last quarter of 2011. Some of that can be attributed to the robo-signing fiasco and some to the new programs that the banks have put in place to help the home owner keep their home. The banks have become a little more flexible in dealing with these delinquent mortgages mainly because the tactics they were using before simply wasn’t working. You can read more about it here:

 

 

Bank of America Tiptoes into Landlording Business

Foreclosure properties

Foreclosure properties. (Photo credit: Wikipedia)

 

It seems like it was only yesterday that when an investor wanted to purchase a property through the short sale process, two things that the Banks demanded were that the homeowner was not to receive any cash and that they were not allowed to stay in the property after the sale. All of that has now been turned on it’s head. Some banks are now offering cash to homeowners for the keys to the property and now BoA will allow some owners to stay on as tenants. The idea is to eventually sell the properties off to investors. Good news for investors and it’s been a long time coming.

Bank of America Corp. has tentatively joined a nascent housing industry movement in which homes in or near foreclosure are sold to investors as rental properties.

The bank on Friday began a test program for 1,000 homeowners headed into foreclosure in Nevada, Arizona and upstate New York — borrowers it has been unable to help with loan modifications but hopes to keep on as renters. If successful, the program could be tried in California and rolled out nationally.

Consumer advocates maintain it often would be better for homeowners, communities and the banks themselves to keep troubled borrowers on as renters rather than kick them out. Seizing and selling empty homes creates neighborhood blight and accelerates downdrafts in housing prices, they contend.

Bank of America doesn’t plan to become a longtime landlord for borrowers turned tenants. In the pilot, it hopes to take possession of homes for no more than three months before selling them to investors making a bet on the recovering housing markets. If the program becomes established, the goal would be for the investors to take over as soon as the occupants relinquish ownership and pay the first month’s rent.

Whether this scheme can work is to be determined by the pilot, the first such test announced by any major mortgage company. The bank wants to find out whether getting a loan off its books with a quick sale at a deep discount is a better deal financially than the foreclosure process, which can drag on for months or even years in highly regulated states such as New York.

“This pilot will help determine whether conversion from homeownership to rental is something our customers, the community and investors will support,” said Bank of America’s Ron Sturzenegger, who oversees about 1 million troubled loans inherited from aggressive mortgage giant Countrywide Financial Corp., which Bank of America purchased in 2008.

Homeowners can’t apply for the program themselves, a bank spokesman said.

The trial is limited to a tiny slice of the 1 million loans that Bank of America owns outright. It is not testing any of the additional 8 million home loans on which it provides customer service but which are owned by investors in mortgage bonds.

Bank of America executives said the 1,000 homeowners selected are all at least 60 days late on their loans and are not qualified for or not willing to accept other alternatives to foreclosure.

They will be offered one final deal: hand their property titles to the bank, which would cancel their mortgages in what’s known as a deed in lieu of foreclosure, and sign contracts agreeing to rent the home for up to three years at or below market rates.

Source

Hopefully this program works out for all parties and the foreclosure backlog starts moving again.

Foreclosure Funding is Available Up to 110%

Foreclosure Funding

Foreclosure Funding (Photo credit: niallkennedy)

 

It’s hard to open the newspaper or watch the news without hearing something almost daily about foreclosures. Maybe you’ve even looked at some of these properties either for your own use or as an investment property. If you have been looking than you’ve probably noticed that most of these houses need a lot of work, with roofs, kitchens, heating systems all seeing better days. Makes you wonder how all that work will get done, especially if you’re not all that handy. It just so happens that the Fed’s have a great program to cure what ails these rundown houses.

There are some great bargains right now in foreclosed homes but they often aren’t in the best of shape. Fortunately, the FHA’s 203(k) program allows you to both buy a house and fix it up with a single mortgage loan.

The FHA 203(k) mortgage is designed for fixer-uppers. You can borrow up to 110 percent of the expected value of the property after renovation to pay for both the purchase and home improvements. You can even do the work yourself, provided you’re qualified to do so, although the FHA will likely insist that you hire professionals for more demanding projects.

Many foreclosures need repairs

Foreclosed properties can be in poor condition for a number of reasons. To begin with, if the previous owners couldn’t make their mortgage payments, they probably didn’t keep up with routine maintenance either. Second, foreclosures often stand vacant for a long time before they are purchased, and may deteriorate during that time. Finally, homeowners facing foreclosure sometimes remove appliances and other items of value, or simply damage the property to spite the bank.

On the plus side, these are some of the reasons why foreclosures sell at a discount in the first place. Quite often, they can be purchased and put back into shape for considerably less than you would spend on a conventional home purchase with only minor upgrades needed.

Streamline option for basic improvements

There are two types of FHA 203(k) loan. If the home only needs modest improvements, like a new roof, new appliances, kitchen remodeling, repairs or upgrades to heating, electrical and plumbing system, floor repairs, basement refinishing and the like, you can apply for a streamlined 203(k), also called a modified 203(k). This will allow you to borrow up to $35,000 with more simplified application requirements than on the standard 203(k).

The standard FHA 203(k) is used for more extensive improvements, those costing more than $35,000 or involving structural work. This might include adding an addition, repairing structural damage, moving a load-bearing wall or any kind of work that involves detailed drawing or architectural exhibits.

Borrow up to 110 percent of improved value

In either event, the maximum you can borrow is either 1) the total of the purchase price and planned improvements, or 2) the estimated improved value of the home plus 10 percent (110 percent of the improved value), whichever is the lower of the two. In any event, you’ll need an appraisal done to calculate what the improved value will be.

In addition, you’ll need to prepare a work plan showing what you plan to do and the cost of the materials and labor. You can do the work yourself, but must show that you are qualified to do so. In addition, you must include a provision for the cost of the labor, so that you can pay to have the work completed by professionals if you are unable to do so in a timely manner – you’re allowed six months for do-it-yourself projects.

 Limited to owner-occupants

The FHA 203(k) loan program is limited to owner-occupants – you must live in the home once renovations are complete. However, the loans can be used to purchase and improve multiunit homes of up to four units, provided that you make one your residence. The loans can also be used to divide a single-unit home into multiple units, or turn a multiunit property into a single-family residence.

Not all FHA lenders deal in 203(k) loans, so you may have to do some looking around to find one who knows how to handle them. You can also expect a somewhat longer closing period than on a regular FHA mortgage, usually about 45-60 days.

 Source

So now you have no more excuses. Get out there and start making offers.

FHA Loans Set to Undergo Changes

Logo of the Federal Housing Administration.

FHA Loans-Image via Wikipedia

For some would be home buyers, the FHA loan is the only option that these buyers have. The FHA claims that the new guidelines will only increase the total monthly mortgage payment by a few dollars, but any increase will surely eliminate a lot of new buyers from the market place. Not exactly a great move to stimulate the housing market.

The Federal Housing Administration will raise mortgage insurance premiums this April in order to repair the health of its emergency fund.

The FHA upfront mortgage insurance premium will increase to 1.75% from 1% of the base home loan amount. This will apply regardless of the term or loan-to-value ratio beginning in April.

The annual mortgage insurance premium will increase by 10 basis points for loans under the $625,500 limit beginning April 1 and by 35 bps for home loans above that amount starting in June, the FHA said Monday. Authority for these raises come under the payroll tax cut extension agreed to last fall.

The FHA said the changes will boost the Mutual Mortgage Insurance Fund by $1 billion.

The UFMIP can still be financed into the mortgage. The increase to the upfront premium will cost new borrowers roughly $5 more per month.

Reverse mortgages and borrowers in special loan programs would be exempt from the changes, according to the FHA.

Last week at the Mortgage Bankers Association servcing conference in Orlando, FHA Commissioner Carol Galante said there would be upcoming insurance premium changes for the streamline refinance program. An FHA spokesman said these changes would be included in a letter to lenders due soon.

Source

The new changes don’t go into effect until April 1, so if you’re thinking about purchasing that new home, you might want to move a little quicker to some to save some money.

 

Mortgage Lenders vs The Scarecrow: If I Only Had a Brain

Are you kidding me? The Banks are just now paying homeowners to get out of a house they can’t afford anymore? They should have been doing this years ago instead of dragging out the short sale process and then delivering the big “No” months later. And then letting the house go through the foreclosure process, which eats up more time and costs them even more money in the process. Here’s one for you: “The banks have realized, ‘We are losing more on the foreclosures than the shorts,'” Augustyniak said. “And they are even willing to compensate the sellers, to give the sellers money to vacate the property.” Wow! What a revelation! Any half-assed Real Estate investor straight out of a short sale seminar in 2006 could have told them that. Guess it takes a while to sink in.

Chase Puts Their Money Where Their Mouth is With Large Short Sale Cash Incentive

McGeough Lamacchia Realty and Dorner Law negotiate a $35,000 payment to their short sale client at closing.

Quote startIt’s important for people who cannot pay their mortgage to be proactive with an alternative such as a short sale.Quote end

Chase Bank sent a homeowner (name withheld) a solicitation letter offering up to $35,000 to do a short sale. Back in August the homeowner called McGeough Lamacchia Realty right away and the home was listed for sale within two weeks.

Once an offer was obtained the staff at McGeough Lamacchia Realty and Dorner Law submitted a short sale package to Chase along with their solicitation letter to remind them that this $35,000 was offered. After five weeks of negotiating Chase not only offered a short sale approval and waived the entire deficiency balance but they agreed to pay this homeowner the entire $35,000.

Over the past year more major banks have realized that paying distressed homeowners a substantial sum is a great way to incentivize them to move out of the home they can no longer afford. Chase has been sending out these solicitation letters of up to $35,000 for about a year. Citi Mortgage has been paying up to $12,000 for about 6 months and Bank of America has most recently agreed to pay up to $20,000.

McGeough Lamacchia Realty and Dorner Law have negotiated large sums for its clients before, but this $35,000 is a new record that they are proud of. These programs are only offered on the loans where these banks actually own the mortgage. Most mortgages are being serviced by the large banks on behalf of one of the three GSE’s: Fannie Mae, Freddie Mac, and FHA (Federal Housing Administration). FHA does offer a $1,500 incentive to do a short sale under their Pre-Foreclosure Sale program. Fannie Mae and Freddie Mac do not currently offer any money unless the short sale is through the Treasury’s HAFA program.

Under the Treasury’s HAFA (Home Affordable Foreclosure Alternative) program which came out in April 2010, lenders are paying $3,000 to distressed homeowners who complete a short sale through the HAFA program.

“It is clear that the major banks have woken up and realized that a short sale is the best way to decrease losses and assist distressed homeowners in a graceful and dignified exit from their home. It’s unfortunate that Fannie Mae and Freddie Mac still haven’t seen the light,” says Anthony Lamacchia.

Short sales are increasing across the country for several reasons:

  •     They are becoming better known to distressed homeowners.
  •     Banks have realized that they save tremendous money through a short sale vs. a foreclosure
  •     Banks have finally hired more staff and are working hard to better their short sale processes
  •     All the major banks are now sending out letters offering short sales to homeowners who cannot qualify for a loan modification. Bank of America recently came out with a Home Transition Guide.
  •     Banks recognize that the sooner they get out of a non-performing loan the more money they save.

“I did my first short sale 20 years ago. They are a great alternative to foreclosure and it is nice to see more distressed homeowners are finally opting for them, especially now that these great incentives are being offered,” says Attorney Hillery Dorner.

Nationally short sales have increased 12% in 2011 and many believe they will increase by much more in 2012.

“One thing distressed homeowners need to know now is that banks will be foreclosing much faster in 2012 than they did in 2011 due to these robo-signing issues for the most part being worked out. Therefore it is important for people who cannot pay their mortgage to be proactive with an alternative such as a short sale,” says John McGeough.

For more on this story, visit the New England Short Sale Blog

About McGeough Lamacchia:

McGeough Lamacchia is the #1 Listing Agency in Massachusetts and named one of the Top 100 Real Estate Teams in the country by RealTrends and the Wall Street Journal. They are a full service real estate agency specializing in short sales in Massachusetts and New Hampshire.

So there you have it. All you seminar graduates, go out there and make some money.

Mortgage Availability Remains a Real Concern: NAR

Mortgage Availability Remains a Real Concern: NAR

Mortgage Availability Remains a Real Concern: NAR-Image via Wikipedia

Realtors® stand ready to protect and defend opportunities for homeownership, and many of them have gathered here at the 2011 REALTORS® Conference & Expo to prepare for the challenges ahead.

During the opening session today at this week’s meetings, National Association of Realtors® President Ron Phipps outlined obstacles and opportunities facing the real estate industry.

“For the first time in generations, the American dream of homeownership is being threatened,” said Phipps, broker-president of Phipps Realty in Warwick, R.I. “We need to keep housing first on the nation’s public policy agenda, because housing and home ownership issues affect all Americans.”

NAR is actively advocating public policies that promote responsible, sustainable homeownership. Those include ensuring affordable, accessible financing; supporting tax policies that encourage homeownership; and helping more people stay in their homes or avoid foreclosure through streamlined short sales.

As Realtors® convene in California this week, conforming loan limits is one top-of-mind issue. On October 1, Congress allowed those limits to revert from 125 percent of the local area median home price to 115 percent of the local median home price. As a result, home buyers and sellers in 669 counties across 42 states and the District of Columbia have been affected. The lower limits mean that fewer people will have access to mortgage loans, and the loans that are available will be more expensive.

“Mortgage availability remains a real concern since the private market has yet to return,” said Phipps. “While the housing market is still in recovery, we firmly believe that lower loan limits will only further restrict liquidity in mortgage markets.”

NAR has urged Congress to reinstate the higher loan limits temporarily, and more than 200 members of Congress currently support efforts to reinstate these limits.

Session attendees also heard about the results of last month’s New Solutions for America’s Housing Crisis forum. The forum was hosted by the Progressive Policy Institute and Economic Policies for the 21st Century and brought together policy leaders, industry representatives, members of Congress, thought leaders and the media.

From this forum, NAR has endorsed a five-point housing solutions plan to help reenergize housing markets and spur the economic recovery.

“Many of the solutions that came out of this forum evolved from ideas that Realtors® have been advocating for several years,” said Phipps. “Realtors® and the families we work with, day in and day out, know that homeownership matters, and now, with our combined and continued efforts, we’re going to make sure that policymakers understand that, too.”

This year’s Realtors® Conference & Expo is expected to draw approximately 18,000 Realtors® and guests. More than 400 exhibitors are expected to participate in the Expo, which showcases the latest real estate products and innovations across various fields, including technology, data communications and financial programs and services.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

Google Enters the Mortgage Loan Business

Google Enters the Mortgage Loan Business

Google Enters the Mortgage Loan Business-Image by James Marvin Phelps via Flickr

LoanSifter, Inc. (www.LoanSifter.com), provider of the mortgage industry’s most complete and intuitive product and real-time pricing platform, announced today a strategic relationship with Google Inc. that gives consumers access to mortgage loan products and real-time pricing based on LoanSifter’s technology, including side-by-side comparisons of mortgage loan products from multiple lenders through Google’s Comparison Ads.

Google’s Comparison Ads help consumers shop for mortgages online by retrieving quotes based on the borrower’s specific loan criteria.  Through a strategic relationship between both companies, Google will leverage LoanSifter’s industry-leading technology – which automates pricing for lenders using the largest real-time database of investor pricing and eligibility content available in the mortgage industry — to provide Google users with information on mortgage products and pricing from the lenders using LoanSifter.  When Google users get these rates, LoanSifter’s lenders will receive qualified online leads.

Greg Ulrich, production manager at Fairway Independent Mortgage Corporation in Colleyville, Texas, believes that Google’s popularity provides a great opportunity as another channel for borrowers to reach the company, without substantial investment costs.  “This saves us money, allowing us to pass a greater savings to the consumer,” Ulrich said.

“We chose LoanSifter for our Google auto-quoting because it enables us to customize our pricing more accurately and effectively,” Ulrich added.  “Other vendors require manual supervision, which would have been problematic in keeping up with market shifts.”

Consumers who search for popular mortgage-related terms or phrases on Google are drawn to Google’s proprietary mortgage Comparison Ads, where they can anonymously provide details such as their desired loan amounts and credit scores.  Google will then retrieve multiple reliable offers from dependable lenders, placed side-by-side so the borrower can compare them.  After investigating different scenarios and choosing a lender, the borrower is then able to contact the lender by phone or e-mail.  Borrowers do not have to fill out lengthy forms or click through walls of advertisements in order to access up-to-the-minute loan products and rates, and the leads generated to lenders are anonymous, so that borrowers can protect their private information until they are ready to move forward in the mortgage process.

“Our relationship with Google will be of tremendous benefit to both lenders and consumers,” LoanSifter President Bruce Backer said.  “A growing number of borrowers are using the Internet to find the best possible mortgage deals, and Google’s immense popularity makes it a first stop for many.  Borrowers benefit from the side-by-side comparison in an open marketplace, while lenders benefit from LoanSifter’s ability to accurately price mortgage scenarios on their behalf.”

About LoanSifter

LoanSifter, Inc. provides the banking industry’s most comprehensive tools for mortgage bankers, loan officers and secondary departments to price, market and manage loans. The company’s flagship technology solution is an accurate, web-based product and pricing solution providing bankers with advanced tools to improve their service levels and increase profits. LoanSifter boasts the most comprehensive investor database in the industry with over 160 correspondent and wholesale investors. LoanSifter is also the leader in delivering point-of-sale (POS) and marketing tools to lenders and loan officers, including its eOriginations suite solution, offering highly customizable website utilities (automated consumer-facing pricing search), automated email campaigns, automated quoting for Zillow and LendingTree, scenario-specific rate monitoring alerts, and automated marketing materials. Founded in 2004, LoanSifter is headquartered in Appleton, Wisconsin.  For more information about LoanSifter, call 920.268.4770 or visit www.LoanSifter.com.

PRESS CONTACT:  
Warren Lutz
Strategic Vantage Marketing & Public Relations
(925) 270-3941
PR@StrategicVantage.com

Web Site: http://www.loansifter.com

Home Loan Originations Increase 22%

Home Loan Originations Increase 22%

Home Loan Originations Increase 22%-Image by Getty Images via @daylife

Strong refinance activity helped residential lenders lift third-quarter loan production, and the elevated originations have continued into the current quarter.

U.S. lenders originated around $354 billion in home loans during the third quarter based on an analysis by MortgageDaily.com. Business jumped roughly 22 percent from the second quarter’s revised $289 billion.

Behind the stellar performance was an increase in refinance volume as the 30-year mortgage fell from an average of 4.740 percent at the end of May to 4.351 percent at the end of August based on the U.S. Mortgage Market Index report from Mortech Inc. and MortgageDaily.com.

Driven by the Greek sovereign debt crisis and the Federal Reserve’s disclosure in September that it plans to extend the maturities of its Treasury investments and reinvest principal payments from agency debt and mortgage-backed securities investments into more agency MBS, mortgage rates have fallen even further. The improvement has kept refinance activity elevated and potentially could have fourth-quarter production even higher.

The Federal Housing Administration endorsed $49.7 billion in mortgages during the third quarter, leaving it with a market share of around 14 percent. FHA market share fell from a revised 18 percent in the second quarter.

Wells Fargo & Co. retained its No. 1 title during the third quarter. But Bank of America Corp. slipped to third place behind JPMorgan Chase & Co., and Ally Financial Inc. also moved down a notch.

Originations

Rank Q3 2011 Q2 2011 Q3 2010
1 Wells Wells Wells
2 Chase BofA BofA
3 BofA Chase Chase
4 Citi Ally Ally
5 Ally Citi Citi

 

Nearly half of all residential production was generated by the top four lenders.

Citigroup Inc., Quicken Loans Inc. and Flagstar Bancorp Inc. each increased volume by at least half compared to the second quarter. But BofA saw new business tumble 18 percent — the worst performance of the biggest lenders.

Compared to the third-quarter 2010, MetLife Home Loans turned in the strongest performance with an increase of 16 percent.

Mortgage Lender Ranking at:
http://www.MortgageDaily.com/MortgageLenderRanking.asp?spcode=pr

Mortgage origination news at:
http://www.mortgagedaily.com/Fundings.asp?spcode=pr

Quarterly mortgage production by the top lenders at:
http://www.mortgagedaily.com/FundingsConforming.asp?spcode=pr

About MortgageDaily.com
Founded in 1998, MortgageDaily.com is a dominant online source of mortgage news, statistics and analysis for the mortgage industry. Visit us online at www.MortgageDaily.com.

CONTACT:
Holly Himelright
NewsAlert@MortgageDaily.com
3811-700 Turtle Creek Blvd.
Dallas, TX 75219

Secondary Mortgage Market Bill Supported by NAR

Secondary Mortgage Market Bill Supported by NAR

Secondary Mortgage Market Bill Supported by NAR-Image by Getty Images via @daylife

Owning a home has had long-standing government support in the U.S. because homeownership benefits individuals and families, strengthens communities, and is integral to the nation’s economy, the National Association of Realtors® said in testimony today.

NAR President-Elect Moe Veissi outlined the association’s recommendations for housing finance reform before the House Financial Services Subcommittee on International Monetary Policy and Trade.

“We must be better stewards of the U.S. housing finance system if it is to thrive and effectively serve American home buyers and mortgage investors into the future,” said Veissi, broker-owner of Veissi & Associates Inc., in Miami. “Repairs to our current housing finance structure must be made, but we must be careful that changes to the system do not come at the expense of homeownership opportunities for middle- and lower income Americans.”

Toward that end, NAR supports H.R. 2413, the “Secondary Market Facility for Residential Mortgage Act of 2011,” introduced by Reps. Gary Miller, R-Calif., and Carolyn McCarthy, D-N.Y.

“H.R. 2413 offers a comprehensive strategy for reforming the secondary mortgage market and gives the federal government a continued role to ensure a consistent flow of mortgage credit in all markets and all economic conditions,” said Veissi. “Moreover, it supports the use of long-term fixed-rate mortgage products.”

Veissi testified that full privatization of the secondary mortgage market would all but eliminate products like the 30-year fixed-rate mortgage and that mortgage interest rates would be unnecessarily higher and unaffordable for many Americans, shutting otherwise qualified buyers out of the market.

“The 30-year fixed-rate mortgage is the bedrock of the U.S housing finance system, and without government support, there’s no evidence that this type of mortgage would continue to exist,” said Veissi. “Private firms’ business strategies would focus on optimizing their profits, creating mortgage products that are more aligned with the goals of their business than in the best interests of the nation’s housing policy or consumers.”

Veissi said that while the size of the government’s participation in housing finance should decrease if private capital is to return to the market and function properly, the federal government must have a continued role in the secondary mortgage market to avoid losing long-term, fixed-rate mortgage products and keep borrowing costs affordable for consumers.

“Continuing government participation in the secondary mortgage market is critical to ensuring that qualified home buyers can obtain safe and sound mortgage financing products even during market downturns, when private entities have historically pulled back,” Veissi said.

Recent reductions to the conforming loan limits by the federal government are already having an impact on mortgage liquidity according to early data from an NAR survey, which found that consumers who are now above the new lower conventional conforming loan limit are experiencing significantly higher interest rates and the need for substantially larger down payments.

Veissi said that the housing and economic recoveries have been slow and that activities that force economic activity to be constricted further should be resisted.

“For hundreds of years, this country has understood the value of homeownership because it helps families build wealth, supports community stability and contributes to our economy. We need to make sure that future housing policies continue to reinforce our long-standing value of homeownership, for the future of our families and our country,” said Veissi.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

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