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NAR is Asking for Realtor Help!

I constantly read emails from NAR and CAR to receive as much knowledge as I can regarding the real estate industry. Below is a letter from NAR requesting Realtors to send to their Congressperson and Senators to make the "Loan Limit Increase Key to FHA Reform Bill Permanent!"

Send a letter to the following decision maker(s): Your Congressperson Your Senators
Below is the sample letter:

Subject: Permanent Loan Limit Increase Key to FHA Reform Bill

Dear [decision maker name automatically inserted here],

As a constituent and a REALTOR, I want to stress how important it is for FHA reform legislation to be quickly enacted. These bills, passed the House and Senate in 2007, are now stalled in conference. Permanent increases in the FHA loan limits, lowered FHA downpayment requirements, and new opportunities for condominium purchases are needed to create safe and affordable mortgage options for our state's homebuyers and those wishing to refinance. These changes will also provide much needed stability to our local housing markets and economies.The new loan limits passed in the recently enacted Economic Stimulus bill will expire in less than 10 months. Dramatically reducing these limits at year's end will push our nation's fragile housing markets into turmoil once again. Realistic loan limits that permanently help ALL areas of the country are needed to bring stability to the marketplace.FHA's downpayment levels led many borrowers to opt for the exotic, risky mortgages that have been the hallmark of the foreclosure crisis. The FHA reform bills will allow FHA to modify downpayment requirements and offer flexible financing to eligible borrowers.In many areas of the country, condominiums remain the most affordable option for homeownership, but FHA owner/occupancy and documentation requirements, make it very difficult to purchase a condominium using FHA mortgage insurance. The FHA reform bills will move condominium financing programs into FHA's single-family program where they belong and ease the way for condominium purchases.We cannot wait any further for FHA reform. Pass a permanent FHA reform bill NOW to give American homebuyers and homeowners the peace of mind they so desperately need.

Sincerely,

Posted by Jean Powers CRS,PMN,ASP Broker, Northern California on 03/18/2008 08:08 PM

Comments (3)

3 Comments on NAR is Asking for Realtor Help!

Jean,

Thank you for this idea. If we all do it, it just may come to pass

03/18/2008 08:11 PM

by Lori Lincoln~Taunton, MA Real Estate Assonet MA, Rehoboth, Dighton, Swansea (Keller Williams Realty)

How many Realtors are there in NAR, if we all send the letter, it will definitely send a loud message.

03/18/2008 08:25 PM

by Christopher Bonta,Realtor/ Integrity and Honesty (The Masiello Group)

I get these all the time and you really have to think about who benefits the most in the "Big Picture" of things before rubber stamping letters.

It's kind of like automatically accepting the endorsement of a union you belong to.

"FHA's downpayment levels led many borrowers to opt for the exotic, risky mortgages that have been the hallmark of the foreclosure crisis."

So.. if the FHA's downpayment levels were the same as the exotic, risky mortgages, would that have changed anything? The Exotic, risky mortgages being offered only enabled borrowers to pay more (which artificially increased home prices) to begin with. The lenders that offered these for over priced real estate are certainly in a world of hurt for their poor decisions. The FHA down payment levels had nothing to do with people opting for the exotic mortgages - the exotic mortgages were taken because they were being handed out for practically free with little requirements. (Appraisal standards for FHA loans are much more stringent to begin with so even if the downpayment levels were equal, I suspect that the exotic loans still would have been the loan of choice.)

Could you imagine if all of these loans were guaranteed by the government?

There are certainly benefits to raising the FHA limits, but the risky loans were there because they were being offered by investment institutions... now they are gone for obvious reasons. Replacing bad decisions with programs backed by the government in the attempt to salvage home prices is a misunderstanding of how home prices got to the levels they got to in the first place.

If I get 0% financing for a product, I still want a good price for that product.

03/18/2008 09:16 PM

by Las Vegas Real Estate - Paul Francis, ABR,CRS (Coldwell Banker Premier)