Speaking not only as a long time REALTOR in Austin, Texas, but a homeowner, business owner, and concerned citizen, the $700 billion bailout plan intended to shore up the nation's lenders was a "necessary evil." I was politically opposed to the plan initially, but like a lot of others couldn't see any other option given the alternatives. The overall economy, and the housing market specifically, are in dire straights.

Without going into all the details of the $700 billion stimulus package because it covers a broad spectrum of ways to implement the hoped-for recovery, I would like to concentrate on one specific area - the "Housing Stimulus" section. I know it's still early, but suffice it to say the plan has unfortunately not been as effective as was hoped in improving the nation's housing market. 

A few ideas have come out of the National Association of REALTORS® (NAR) Convention in Orlando, Florida, that just ended last week, that we as, not just REALTORS, but concerned citizens, should support. Congress may consider a second economic stimulus bill this month. If they do, there are a number of changes that could help to provide more stability to the nation's real estate markets which most agree is a necessary step towards recovery. If we ALL, not just REALTORS, contacted everyone in our database to contact their congressman for a positive vote, we could see a lot fewer foreclosures in the near future!

NAR has proposed a Four-Point Housing Stimulus Plan and has urged Congress to include the following provisions in any future legislation:

1)Make the $7,500 first-time homebuyer tax credit available to all buyers and eliminate repayment requirements. The credit's limited availability and repayment requirement severely inhibit its use and effectiveness.

 2) Make the 2008 Federal Housing Administration (FHA), Fannie Mae and Freddie Mac loan limits permanent. New rules for 2009 will reduce the loan limits, but now is not the time to tighten mortgage affordability.

 3) Get the Emergency Treasury bank relief program back on track and allocate more funds to mortgage relief. Create a federal mortgage interest buy-down program to make below-market rates available and stabilize home prices. The proposed rate buy-down is close to two points below the current rate.

 4)Permanently bar banks from engaging in real estate brokerage and management. The banks have proven they have enough to do simply managing the loan process. They should not handle home sales and purchases as well.

To contact your congressman, click here.