Statement from NAHB Chairman Bob Nielsen on Changes to the Home Affordable Refinance Program

WASHINGTON, Oct. 24-- Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev., issued the following statement regarding today's announcement by the Federal Housing Finance Agency (FHFA) to enact a series of changes to the Home Affordable Refinance Program (HARP):

"It is encouraging that the Obama Administration is beginning to turn its attention to restoring the nation's housing market, which is crucial for the health of our economy.

"Making more borrowers eligible for refinancing their mortgages by enhancing the Home Affordable Refinance Program (HARP) will give a badly needed boost to consumer confidence. Enabling additional home owners to take advantage of today's low mortgage interest rates in cases where their loans are greater than the value of their homes will give some households more money to spend on other things and enable others to at least pay their mortgages off at a faster rate.

"However, for the many families who have fallen behind in their payments because of the weak job market, the changes to HARP will have no benefit. HARP is only open to mortgage borrowers who have remained current with their payments. Clearly, additional policy initiatives are urgently needed to prevent foreclosures and deal with the inventory of foreclosed homes.

"In addition, it is essential to address overly restrictive mortgage lending standards, inappropriate credit limitations on home builders and a broken appraisal system that is contributing to housing price instability. All of these factors are detrimental to the full-scale housing recovery we need to rally consumers and get a disappointing economic recovery moving forward.

"We still have an enormous amount of work to do to repair housing. The HARP changes are a good step, but our leaders in Washington need to quickly focus on a broader range of actions for improving the housing marketplace. It has taken a painfully long time for them to recognize that housing is indispensable to the job creation and growth that have been sorely lacking since the end of the recession. The American people are losing patience and they expect far better economic prospects than those they are finding today, which stem in large part from neglecting housing."

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ABOUT NAHB: The National Association of Home Builders is a Washington-based trade association representing more than 160,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. NAHB is affiliated with 800 state and local home builders associations around the country. NAHB's builder members will construct about 80 percent of the new housing units projected for this year.

NEW-HOME SALES RISE 5.7 PERCENT IN SEPTEMBER

WASHINGTON, Oct. 26 - Sales of newly built, single-family homes rose 5.7 percent to a seasonally adjusted annual rate of 313,000 units in September, according to newly released data from the U.S. Commerce Department. This marks the fastest pace of new-home sales in the past five months.

"Today's report highlights the gradual improvement in housing market conditions that is becoming evident in certain pockets of the country, as consumers who can surmount very restrictive lending standards to qualify for a favorable mortgage rate seize on this opportunity to buy," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. "The latest numbers also reveal that first-time buyers are driving the new-homes market right now, as evidenced by the volume of lower-priced, entry-level homes under contract. It's worth noting that these consumers are very dependent upon federal policies and programs that support homeownership, such as the mortgage interest deduction and low-downpayment mortgage options that have been threatened by recent government proposals."

"The improved rate of new-home sales in September is on par with NAHB's forecast for the overall number of sales this year and in keeping with the spotty improvements that our latest builder surveys have highlighted in select markets," said NAHB Chief Economist David Crowe. "While 313,000 is still an exceptionally low rate of new-home sales by historic standards, it is an encouraging sign of an anticipated broader recovery over the course of next year, and builders have helped the situation by keeping their inventories of homes for sale very lean in areas where there is an oversupply of existing units."

Regionally, new-home sales were mixed in September, with gains of 11.2 percent and 9.7 percent registered in the South and West, respectively, and declines of 4.2 percent and 12.2 percent registered in the Northeast and Midwest, respectively.

The inventory of new homes for sale held at an all-time record low of 163,000 units in September. This represents a modest 6.2 -month supply at the current sales pace.

Holiday Season Safety Tips

Planning for the holidays is a busy and joyful time. But all of the decorations, extra electrical cords and the parade of people going in and out of your home calls for more safety precautions to help you make this holiday season safe and happy for you and your family.

Here’s a checklist for home holiday safety: 

·         Ask a friend or neighbor to watch your house and take in your newspaper and mail if you plan to spend the holidays away from home. Put lights throughout the house on timers to turn them on and off in your normal living pattern.

·         If you display a live Christmas tree or live greenery, select the freshest possible. A moist tree is less likely to catch fire. Look for a trunk sticky with sap and for green needles that bend and are secure on the branches.

·         When using a live Christmas tree, cut the base at a 45-degree angle. Place it in a container with water and always keep the water level above the cut.

·         Place trees a safe distance from stoves, radiators, vents, fireplaces and any other heat source that may dry the tree. Inspect the tree for dryness daily.

·         Inspect all holiday light wiring. Defective, worn or frayed electrical wiring should be thrown away. Check for the UL label on lights. Also, be sure to use fixtures specifically designed for outdoor use if you decorate your house, trees or yard.

·         Use no more than three light sets on any one extension cord. Also, don't run electrical cords under rugs. Be sure all lights are turned off before you go to bed or leave the house.

·         Place candles and other open flames away from decorations. Never leave burning candles unattended and always supervise children when burning candles.

·         Keep a fire extinguisher near your Christmas tree. Make sure your family has a fire emergency escape plan. In case of fire, leave your home and call for help from a neighbor's home.

·         When buying artificial decorations, check for "flameproof" or "fire retardant" qualities.

·         Never burn wrapping paper in a fireplace or wood stove. Certain ink pigments react with heat and create airborne particulates that are dangerous to inhale. Also don’t burn evergreens, they could flare out of control and send flames and smoke into your house.

·         Cooking is a leading cause of home fires and home fire injuries. When you cook, be sure to wear clothes that fit close to the body so they won't be ignited by hot burners. Do not leave items cooking on the stove and be sure that pot handles are turned in.

The decorations around your house, lights, gifts, music and the presence of loved ones make the holiday season festive and fun, and with the proper precautions, safe.

Learn more about home safety, maintenance and other homeownership advice at the Home Builders Association of Grand Traverse Area, Inc.

NAHB INVITES MEMBERS TO PARTICIPATE IN TELEFORUMS SHOWCASING PRESIDENTIAL CANDIDATES

This fall, the National Association of Home Builders is co-sponsoring several virtual town hall events with the presidential candidates. These events are to be conducted as “teleforums” that provide members an opportunity to hear from the candidates and ask them questions via telephone. Together with our co-sponsors, we have invited the following candidates to conduct individual teleforums: President Barack Obama Governor Mitt Romney Governor Rick Perry Congressman Ron Paul Congresswoman Michele Bachmann Speaker Newt Gingrich Businessman Herman Cain Register Your Interest to Be Connected to these Teleforums All NAHB members are invited to participate. Simply fill out the registration form at this link. You will need to provide us with a valid telephone number at which you can be contacted when the event begins. Here’s How it Works Due to last-minute changes in the candidates’ schedules, all teleforum times are approximate. Each teleforum event will last roughly 45 to 60 minutes, and you will receive instructions on how to submit a question to the candidate once you are connected. Please keep in mind that only a limited number of questions can be taken in each teleforum due to time constraints. Also bear in mind that, if you do not wish to participate in a certain teleforum, all you need to do is hang up when the operator calls you.  NAHB expects more candidates to soon confirm times in which they can participate in a teleforum event. You will be notified of each subsequently scheduled teleforum as soon as that information is available. NAHB Policy on Presidential Elections Consistent with our policy, NAHB is not endorsing any presidential candidate. We are simply providing a channel through which the candidates can talk with our members, and vice-versa. It is up to each of our members to decide whether he or she will participate in any of the calls that will be taking place. Questions? Contact Nick Gentile at ngentile@nahb.org if you have any questions about this unique opportunity to connect with the 2012 presidential candidates.

PRO-HOUSING POLICIES WILL STIMULATE JOB GROWTH

WASHINGTON, Oct. 7 - While the nation may have added 103,000 new jobs in September, the employment report showed relative weakness, particularly as it relates to the residential construction sector, which remains far below its job-creation potential in the absence of policies to restore the health of the housing marketplace, according to the National Association of Home Builders (NAHB).

"We are seeing now what an economic recovery looks like without housing, and the picture is hardly encouraging," said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. "We need to address anti-housing impediments to home builders creating jobs in countless communities across the land."

The inventory of new homes for sale is at a record low and there are many areas of the country that are approaching a housing shortage. Tight credit conditions are preventing builders from meeting this emerging demand, putting workers back on the job and helping the economy move forward.

Further exacerbating the situation is today's pervasive anti-housing climate in Washington, said Nielsen.

"Leaders in Washington must stop scaring consumers by talking about eliminating the mortgage interest deduction, ending a federal backstop for housing and calling for a minimum 20 percent downpayment on home loans," said Nielsen. "This is counterproductive and harms consumer confidence, the housing market and the nation's economy."

Housing normally accounts for more than 17 percent of Gross Domestic Product and building 100 single-family homes creates 305 full-time jobs and $8.9 million in taxes and revenue for state, local and federal governments.

"Getting housing back on its feet would be a shot in the arm for consumer confidence, boost job growth and lead to a long-lasting economic recovery," said Nielsen.

Housing is Key to Job Creation, Economic Recovery

WASHINGTON, Oct. 5 - Discussions on the need to restore the nation's languishing housing market in order to rouse job creation from anemic levels and boost economic growth has been prominent this week in congressional testimony from Federal Reserve Chairman Ben Bernanke and in newspapers across the country, leaving many wondering when leaders in Washington will take action to address this problem.

"How many more articles need to appear on the front pages of major newspapers and how many officials need to sound the alarm before federal policymakers reverse anti-housing policies that are dampening demand and preventing a housing and economic recovery from taking hold?" asked Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev.

Testifying before the Joint Economic Committee yesterday, Bernanke said: "The housing sector has been a significant driver of recovery from most recessions in the United States since World War II. This time, however, a number of factors -- including the overhang of distressed and foreclosed properties, tight credit conditions for builders and potential home buyers, and the large number of 'underwater' mortgages (on which home owners owe more than their homes are worth) -- have left the rate of new home construction at only about one-third of its average level in recent decades."

With inventories of new homes nearly depleted in many markets, builders should be gearing up to meet demand, create new jobs and help the economy move forward. Unfortunately, production remains stymied because builders in these locations cannot get credit from lending institutions to begin work on new homes.

"National unemployment flatlined in August, more than 1.4 million residential construction jobs have been lost since April 2006 and yet there is demand for housing in markets that are on the mend," said Nielsen. "Home builders have plenty of shovel-ready jobs set to go but they can't keep their doors open and create jobs in their communities if federal regulators continue to shut off the credit spigot."

During the past few months, seven different national surveys conducted by prominent polling organizations including the New York Times/CBS News, the Pew Research Center, the AllState/National Journal Heartland Monitor and Hanley-Wood have looked at homeownership from every possible angle.

"One thing is always crystal clear in all these polls," said Nielsen. "The American people still strongly believe that homeownership provides security, stability and a solid long-term investment. Yet, policymakers are doing their best to put policies in place that reduce the American people's ability to purchase a home. Why? How long do we want to stay in a recession?"

While prudent underwriting and other safeguards are needed to prevent another housing collapse in the future, he said, current proposals to correct shortcomings in the home finance system are far more stringent than necessary and threaten to price many creditworthy borrowers out of the housing market.

Six federal agencies are proposing a national Qualified Residential Mortgage standard that would require a minimum 20 percent downpayment and other stricter qualifications, which would keep homeownership out of reach for most first-time home buyers and middle-class households. NAHB estimates that it would take 12 years for a typical family to save enough money for a 20 percent downpayment on a median-priced single-family home and other research has found it would take even longer.

Meanwhile, some members of Congress are actively pushing to abolish Fannie Mae and Freddie Mac and end the federal backstop for housing. A strong federal role is essential to help absorb market risk, ensure a stable and reliable flow of credit for home buyers and to maintain a liquid secondary market. Diminishing or ending government support for housing would make the 30-year, fixed-rate mortgage, the major housing finance tool for most Americans, increasingly scarce and much more costly.

Further complicating the situation, this week's reduction in the conforming loan limits means that many prospective buyers who are seeking a home loan will now have to pay higher interest rates, fees and downpayments and face more stringent credit standards.

Noting that housing normally accounts for more than 17 percent of the nation's total economic output, Nielsen said policymakers need to take steps to spur housing, create jobs and bolster the economy.

"Home building can be the key engine of job growth that this country needs," he said. "Constructing 100 single-family homes generates more than 300 jobs and $8.9 million in taxes and revenue for state, local and federal governments that helps to fund local school systems and build strong communities."

Builders Urge Caution on National Ocean Policy

WASHINGTON, Oct. 4 - The National Association of Home Builders (NAHB) today urged Congress to proceed with caution and conduct a cost-benefit analysis before implementing any new regulations or requirements that call for the federal government to develop a National Ocean Policy, which the Administration is now contemplating.

Testifying before the House Natural Resources Committee, NAHB Chairman-elect Barry Rutenberg, a home builder from Gainesville, Fla., said that utilizing environmentally friendly building techniques, NAHB members regularly take steps to improve the long-term conservation and care of the nation's coastal and Great Lakes communities.

"The nation's home builders recognize the need to preserve the health of the marine ecosystem as it is one of the many lifelines upon which we as a nation depend," he said. "However, NAHB is concerned that federal agencies will enact regulations that will only have a minor impact on the environment but impose a significant cost on private landowners and businesses. Such an outcome is unacceptable and completely contrary to this Administration's pledge to make regulations more effective and less burdensome."

A common-sense regulatory structure that continues to allow state and local governments to plan for and determine appropriate uses for their entire communities, including residential development, is important to maintain housing choice for consumers, create jobs in local communities and generate revenues for all levels of government.

NAHB analysis of the broad impact of new construction shows that building 100 average single-family homes generates 305 full-time jobs and increases the property tax base that supports local schools.

As one of the most highly regulated industries, Rutenberg said, home builders already comply with numerous federal, state and local environmental statutes. For example, home builders must abide by the Federal Emergency Management Agency's National Flood Insurance Program when siting, designing and constructing their homes; meet the mandates of the Clean Water Act for controlling storm water discharges; demonstrate that their activities are consistent with their state's coastal zone management plan; and meet the requirements for their local zoning, critical areas or shoreland protection ordinances.

"Clearly, governments at all levels have already taken significant steps to protect coastal areas," said Rutenberg. "Any potential government policies that will broadly shape the future of our communities must be based on solid research and sound science and data and allow for choices and flexibility in the marketplace."

Since its scope is currently undefined and also references coastal areas, the proposed National Ocean Policy has the potential to link land-based activities to the health of the ocean.

"NAHB has significant concerns about the potential for the federal government to overstep its bounds with regard to land use planning, a practice that allows home buyers and home owners the opportunity to live in a home of their choice in a location of their choice," said Rutenberg.

"Past experience suggests that caution must be taken to ensure that local governments are free to direct their community growth without any federal interference or coercion."

Given the number of existing policies specifically designed to protect the nation's oceans, coastlines and watersheds; efforts already taken at the federal, state and local levels; and the need to preserve the rights of local governments, Rutenberg told lawmakers that NAHB questions the need for an additional layer of regulation that could impede the housing and economic recovery.