No Better Time Than Now To Become a Member of the HBAGTA!

Home Building Professionals - Builders, Remodelers, Trade Contractors, Suppliers and so many more, this is the best time for you to become a member of the Home Builders Association of the Grand Traverse Area!  Special offers worth over $450 are available to you and your business when you join the Association before October 8, 2012. 

• Do you want to promote your business and increase your sales? 
• Do you want a trusted resource to keep your professional skills and knowledge up to date?
• Do you want the oppportunity to show your product in a premier consumer event?
• Do you want to be a part of the force that advocates for the housing industry?
• Do you want to be considered a top professional in your industry?

The Home Builders Association can help you meet these goals and so much more!

• The HBA actively promotes our members as the leaders in our industry. 
• The HBA provides a team of support professionals to help guide you through the many licensing and regulatory issues and challenges.
• The HBA offers free and low cost educational opportunities for you and your staff.
• The HBA supports our members by providing venues to showcase your product or services.
• The HBA protects your livelihood by advocating for our industry when policies and legislation are on the agenda.

The Home Builders Association is proud to be a resource for both professionals and consumers in our unique and diverse area.

HBA membership is more than a discount on a car rental or insurance and it's more than putting another listing on the world wide web.  HBA membership is about supporting you, your family and your livelihood in an industry that affects each and everyone of us - the Home Building Industry.

For more information on membership, contact the Home Builders Association of the Grand Traverse Area at 231.946.2305 or visit their website at www.hbagta.com.

Diverse Group Calls on CFPB to Create Broad QM Market - Narrow QM Would Harm Consumers and the Housing Recovery

WASHINGTON, April 17- A diverse group of 33 lenders, housing professionals, consumer advocates and civil rights organizations came together today to call on the CFPB to issue broadly defined and clear Qualified Mortgage (QM) standards as part of the forthcoming Ability to Repay regulation.

The organizations wrote to Richard Cordray, Director of the Consumer Financial Protection Bureau, that a narrowly defined QM would undermine prospects for a housing recovery and threaten the redevelopment of a sound mortgage market.

"Congress intended that all creditworthy borrowers - especially low- and moderate-income borrowers and families of color - should be extended the important protections of a QM ... A broad QM, which includes sound underwriting requirements, excludes risky loan features, and gives lenders reasonable protection against undue litigation risk, will help ensure revival of the home lending market."

Federal Reserve Chairman Ben Bernanke, other regulators and many private sector economists and housing market analysts have highlighted the fact that today's underwriting standards are too restrictive and are holding back a housing recovery. A narrowly constructed definition of Qualified Mortgages would further tighten credit, and harm consumers, curtail lending and jeopardize the fragile housing recovery.

- Consumers - Many of today's loans and borrowers would be forced into the non-QM market, which will be far costlier, burdening families least able to bear the expense. Furthermore, these higher-priced loans would not be required to include important protections against the loan features that drove the highest failures in the mortgage boom.

- Lending - If more borrowers are forced into the non-QM market, lenders and investors will be at greater risk of violating ability to pay violation and anti-steering rules. As a result of these increased risks, these loans are either less likely to be made or else made at increased cost to consumers.

- Housing market - If the parameters of the QM are not clear, risks become unpredictable, forcing lenders to decrease their risk tolerance and operate well within the standards. Such an outcome will lessen both the availability and affordability of credit for far too many borrowers.

"Creating a broad QM, which includes sound underwriting requirements, excludes risky loan features, and gives lenders reasonable protection against undue litigation risk, will help ensure revival of the home lending market," wrote the organizations.

The following organizations signed on to the letter, which is available at http://www.ksefocus.com/billdatabase/clientfiles/172/3/1480.pdf

1 American Bankers Association

2 American Escrow Association

3 American Financial Services Association

4 American Land Title Association

5 American Securitization Forum

6 Asian Real Estate Association of America

7 Center for NYC Neighborhoods

8 Community Associations Institute

9 Columbus Housing Partnership

10 Community Mortgage Banking Project

11 Community Mortgage Lenders of America

12 Consumer Bankers Association

13 Consumer Mortgage Coalition

14 Financial Services Roundtable

15 Habitat for Humanity International

16 Housing Policy Council

17 Independent Community Bankers of America

18 Leading Builders of America

19 Mortgage Bankers Association

20 Mortgage Insurance Companies of America

21 National Association of Hispanic Real Estate Professionals

22 National Association of Home Builders

23 National Association of Mortgage Brokers

24 National Association of Neighborhoods

25 National Association of Real Estate Brokers

26 National Association of Realtors®

27 National Community Reinvestment Coalition

28 National Council of State Housing Agencies

29 National Housing Conference

30 Real Estate Services Providers Council, Inc. (RESPRO®)

31 Real Estate Valuation Advocacy Association

32 The Appraisal Institute

33 The Realty Alliance

Home Builders Applaud Menendez Bill to Restore the Flow of Credit for Home Building

ORLANDO, Feb. 8 - The National Association of Home Builders (NAHB) today commended Sen. Robert Menendez (D-N.J.) for introducing the Home Building Lending Improvement Act of 2012, legislation to help restore the flow of credit for new housing production in order to create jobs, meet rising housing demand and bolster the economic expansion.

"We applaud Rep. Menendez for sponsoring this bill and leading the effort in the Senate to end the severe credit crunch for home building that is needlessly idling residential construction workers and hampering the housing and economic recovery," NAHB Chairman Bob Nielsen, a home builder from Reno, Nev., said while attending the International Builders' Show in Orlando.

With new housing inventories at or near record lows in many parts of the country, builders should be gearing up to produce homes to meet sizable demand from pent-up household formations and the growing list of metro areas on the NAHB/First American Improving Markets Index whose economies are recovering.

Unfortunately, banks have largely cut off home builders from the credit they need to finance new projects or complete those still underway.

Resolving this situation will enable home builders to start rebuilding the economy. Constructing 100 average single-family homes creates more than 300 jobs, $23.1 million in wages and business income and $8.9 million in taxes and revenue for local, state and federal government. And there is a considerable economic ripple effect from there. New home building contributes to the local tax base, which supports schools, police, firefighters and road construction in municipalities across the land, and most of the products used in home construction are manufactured here in the United States.

Similar legislation to resolve the ongoing credit problems for home builders was introduced in the House last year by Reps. Gary Miller (R-Calif.) and Brad Miller (D-N.C.). H.R. 1755, the Home Construction Lending Regulatory Improvement Act, currently has 87 House cosponsors.

"Without access to financing, small home builders cannot keep their doors open, let alone meet the rising demand that is emerging in scores of markets across the nation," said Nielsen. "The Menendez bill will help address the housing production credit crisis and establish an effective foundation to help housing regain its health, contribute to job growth and strengthen the economic expansion."

Remodeling Market Index Rises to Five-Year High

WASHINGTON, Jan. 26 - Remodeling sentiment rose to the highest level in five years, according to the National Association of Home Builders' (NAHB) Remodeling Market Index (RMI) for the fourth quarter of 2011. Released today, the RMI increased to 46.6 in the fourth quarter from 41.7 in the third quarter.

In the fourth quarter, the RMI component measuring current market conditions rose to 48.4 from 43.0 in the previous quarter. The RMI component measuring future indicators of remodeling business was also positive, increasing to 44.8 from 40.4 in the previous quarter.

An RMI below 50 indicates that more remodelers report market activity is lower (compared to the prior quarter) than report it is higher. The overall RMI averages ratings of current remodeling activity with indicators of future activity.

"As more consumers remain in their homes rather than move in this economy, remodelers benefited from a gradual increase in home improvement activity, taking us to a five-year high," said NAHB Remodelers Chairman Bob Peterson, CGR, CAPS, CGP, a remodeler from Ft. Collins, Colo. "2011 ended on a strong note for the remodeling industry."

Current market conditions improved significantly in all four regions over the third quarter of 2011. The RMI reported higher market activity in two important categories: major additions 52.3 (from 45.2) and minor additions 50.1 (from 45.7).

Future market indicators in each region also experienced gains from the previous quarter. Two of the indices reported a level over 50: calls for bids at 50.7 (from 45.4) and appointments for proposals at 50.1 (from 43.3), while work committed for the next three months only rose to 31.5 (from 29.9).

"With several key components above 50, the latest RMI provides reason for guarded optimism going forward," said NAHB Chief Economist David Crowe. "The residential remodeling market has been improving gradually, mirroring the trend in other segments of the housing market. Stringent lending requirements and economic uncertainty continue to be a drag on demand, but we expect a modest growth in remodeling activity to continue throughout 2012."

For more information about remodeling, visit www.nahb.org/remodel.

Single-Family Housing Starts Rise 4.4 Percent in December

WASHINGTON, Jan. 19 - Nationwide production of new single-family homes rose 4.4 percent to a seasonally adjusted annual rate of 470,000 units in December, according to newly released figures from the U.S. Commerce Department. This marked a third consecutive increase and the fastest pace of single-family housing starts since April of 2010. Meanwhile, the overall number of housing starts for the month declined 4.1 percent to a 657,000-unit rate due to a 20.4 percent dip on the more volatile multifamily side.

"Today's report adds to the growing evidence that demand for new, single-family homes is finally starting to firm up in an increasing number of markets nationwide," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. "This emerging trend is allowing builders to put more crews back to work, and could be even stronger if not for the overly tight credit conditions that prevail for both builders and buyers, as well as the continuing foreclosure crisis and the challenges of obtaining accurate appraisal values on new homes. Policymakers should be doing everything possible to alleviate these problems and nurture the fledgling housing recovery in order to promote job and economic growth."

"This report is in keeping with our expectations for slow but steady improvement in the single-family market, where production hit its lowest yearly rate in over 50 years in 2011," said NAHB Chief Economist David Crowe. "Meanwhile, it should be noted that the decline in multifamily starts in December was coming off a dramatic increase from the previous month and simply brought that sector back closer to trend. Apartment production generally continues to gain strength heading into 2012 after posting a more-than 50 percent gain in 2011." Looking forward, NAHB is forecasting gains of approximately 17 percent in both single- and multifamily housing production in 2012.

Combined single- and multifamily housing starts fell 4.1 percent to a 657,000-unit rate in December due to the multifamily side retreating 20.4 percent from a big gain in the previous month, to a seasonally adjusted annual rate of 187,000 units. However, for the year as a whole, overall housing production was pegged at 606,900 units, which was 3.4 percent better than the overall number of starts in 2010.

Regionally, December housing starts rose 54.8 percent in the Midwest following a big decline in the previous month. The Northeast posted a 41.2 percent decline that offset a big gain in the previous month, while the South and West also posted declines of 3.0 percent and 17.6 percent, respectively.

Permit issuance, which can be an indicator of future building activity, held virtually flat at a 679,000-unit rate in December. Single-family permits rose for a third consecutive month, by 1.8 percent to 444,000 units, while multifamily permits declined 3.7 percent to 235,000 units.

Regionally, permits rose 5.8 percent in the Midwest and held unchanged in the West, but declined 6.5 percent in the Northeast and 0.6 percent in the South in December.

Voters Place High Value on Homeownership, Oppose Policies That Make It More Difficult to Own a Home

January 11, 2012 - By an overwhelming margin, American voters strongly value homeownership and would oppose efforts to weaken or eliminate the mortgage interest deduction or diminish a federal role to help qualified home buyers obtain affordable 30-year mortgages, according to a new nationwide survey gauging likely voters’ attitudes towards homeownership and housing policy issues.

“The American electorate is sending a clear message that owning a home remains a cornerstone of the American Dream and preserving a federal commitment to homeownership is essential to maintain a thriving middle class and get housing and the economy back on track,” said Neil Newhouse, a partner and co-founder of Public Opinion Strategies.

Conducted on Jan. 2-5 on behalf of the National Association of Home Builders by the Republican and Democratic polling firms of Public Opinion Strategies in Alexandria, Va., and Lake Research Partners in Washington, D.C., the comprehensive survey of 1,500 likely voters includes data from key political “swing areas,” including National Journal political analyst Charlie Cook’s swing House and Senate seats and Stuart Rothenberg’s presidential swing states. The survey, which has a margin of error of ±2.5 percent, is a follow-up to a similar national poll conducted last May.

The poll shows that three out of four voters – both owners and renters -- believe it is appropriate and reasonable for the federal government to provide tax incentives to promote homeownership. This sentiment cuts across regional and party lines, with 84 percent of Democrats, 71 percent of Republicans and 71 percent of Independents agreeing with this statement.

Also, two-thirds of respondents say that the federal government should help home buyers to afford a long-term or 30-year, fixed-rate mortgage.

Moreover, 73 percent of voters oppose eliminating the mortgage interest deduction. These figures held firm across the political spectrum, with 77 percent of Republicans, 71 percent of Democrats and 71 percent of Independents against doing away with the mortgage interest deduction.

Meanwhile, 68 percent would be less likely to vote for a congressional candidate who proposed to abolish the deduction, a figure that was virtually identical across all party affiliations (69 percent of Independents and 68 percent of Democrats and Republicans).

A majority of voters are also against proposals to reduce the mortgage interest deduction, eliminate the deduction for interest paid for a second home, limit the deduction for those earning more than $250,000 per year, scale back the deduction for home owners with mortgages above $500,000 and do away with the deduction for interest paid on home equity loans.

“With the 2012 election season in full swing, candidates running for the White House and Congress would be wise to heed the will of the American voters, who have expressed broad support for government policies that encourage homeownership and oppose efforts to make it more difficult to get a home loan and to tamper with the mortgage interest deduction,” said Celinda Lake, president of Lake Research Partners.

Among the poll’s other key findings:

• 96 percent of home owners are happy with their decision to own and 84 percent who are “underwater,” or owe more on their mortgages than their home is worth, expressed the same sentiment.
• 79 percent of home owners would advise a family member or close friend just starting out to buy a home, and 69 percent of those who are underwater on their mortgage would offer the same advice.
• 74 percent said that despite the ups and downs in the housing market, owning a home is the best long-term investment they can make.
• Homeownership and a retirement savings program are considered by voters to be their best long-term investments.
• 78 percent of respondents said that owning their own home is very important to them.
• Nearly seven out of 10 voters who are not currently home owners (68 percent) said it was a goal of theirs to buy a home.
• Job uncertainty and saving for a downpayment and closing costs are the biggest barriers to buying a home.

The survey findings are consistent with the results of other public opinion surveys. In a New York Times/CBS News poll conducted in June, 89 percent said that homeownership is an important part of the American Dream and more than 90 percent indicated that it is important for the federal government to continue the mortgage interest deduction.

According to a Pew Research Study conducted last March, 81 percent of respondents agree that buying a home is the best long-term investment a person can make and 81 percent of renters surveyed said they would like to buy a house.

“Even in a down housing market, homeownership remains a core American value, with the vast majority of citizens who do not currently own a home saying they want to buy a home,” said Bob Nielsen, president of the National Association of Home Builders and a home builder from Reno, Nev. “Those running for office in November need to understand that voters will not look kindly on any candidates who seek to dismantle the nation’s long-term commitment to homeownership.”

Poll results can be downloaded at www.nahb.org/homeownershippoll.

New Poll Finds That Voters Still Value Homeownership

New Poll Finds That Voters Still Value Homeownership, and Want Policymakers to Support Housing NAHB to Release Results in Media Teleconference on Wednesday.

WHEN:

Wednesday, Jan. 11, 2012

1:00 p.m. ET

WHO:

· Jerry Howard, CEO, National Association of Home Builders

· Neil Newhouse, partner and co-founder, Public Opinion Strategies

· Alex Bratty, partner, Public Opinion Strategies

· Celinda Lake, president, Lake Research Partners

· Jonathan Voss, senior analyst, Lake Research Partners

WHAT:

On Wednesday, Jan. 11 at 1:00 p.m., the National Association of Home Builders (NAHB) will host a media teleconference to reveal the results of a national poll of 1,500 likely voters looking at the value Americans place on homeownership. The poll indicates that, despite the economic downturn and housing crisis, respondents still consider owning a home an integral part of the American Dream and feel that policymakers need to take active steps to promote homeownership. Results reveal voter attitudes towards key housing issues including the mortgage interest deduction, and how those feelings would translate at the voting booth.

The survey was conducted by Neil Newhouse, partner and co-founder of Public Opinion Strategies, a leading Republican polling company, and Celinda Lake, president of Lake Research Partners, one of the Democratic Party's leading strategists. During the teleconference, the pollsters will analyze the survey results, while NAHB CEO Jerry Howard will discuss its implications on the future of the American Dream.

Members of the media will be given the opportunity to ask questions at the conclusion of the call.

TO PARTICIPATE:

1. Direct your web browser to http://eventcenter.commpartners.com/se/NAHBLogin

2. Under "Enter a Webinar" in the blue box, enter the meeting number 416543 and click on "Enter."

3. In the "Display Name" box, type in your first and last name and click on "Enter Meeting."

4. The primary means of listening to this Webinar is via audio streaming (your computer speakers). If your computer does not support audio streaming, please dial the following 1-888-364-3107 or 1-719-325-2309 (International Participants) and when prompted by the operator state the name of the meeting you want to join and this code 6374149.

If you have technical difficulties please e-mail nahb@commpartners.com.

Slides and instructions will also be posted at:
www.nahb.org/homeownershippoll. Please contact Liz Thompson at ethompson@nahb.org with any questions.

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As More Markets Stabilize, Housing Affordability Hovers Near Record Levels for 10th Consecutive Quarter

WASHINGTON, November 17 - Buoyed by stabilizing home prices and sustained low interest rates, nationwide housing affordability during the third quarter of 2011 hovered near its highest level in the more than 20 years it has been measured, according to National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) data released today.

The HOI indicated that a near-record 72.9 percent of all new and existing homes sold in the third quarter of the year were affordable to families earning the national median income of $64,200. The affordability measure rose slightly from the 72.6 percent set last quarter and has remained above the 70 percent threshold for 11 consecutive quarters. The HOI rarely rose above 60 percent prior to this period.

"With interest rates at historically low levels and markets across the country beginning to improve, homeownership is within reach of more households than it has been for nearly two decades," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. "However, tough economic conditions -- particularly in markets that experienced major changes in house prices and production -- as well as extremely tight credit conditions confronting home buyers and builders continue to remain significant obstacles to many potential home sales."

Lakeland-Winter Haven, Fla., was the most affordable major housing market in the country during the third quarter of the year. In Lakeland, 92.5 percent of all homes sold were affordable to households earning the area's median family income of $53,800.

Other major metro housing markets ranking near the top of the index were Toledo, Ohio; Youngstown-Warren-Boardman, Ohio-Pa.; Indianapolis-Carmel, Ind.; and Ogden-Clearfield, Utah, respectively.

Among smaller housing markets, the most affordable was Fairbanks, Alaska, where 97.8 percent of homes sold during the third quarter of 2011 were affordable to families earning a median income of $91,700. Also ranking near the top were Kokomo, Ind.; Cumberland, Md.-W.Va.; Davenport-Moline-Rock Island, Iowa-Ill.; and Lima, Ohio.

New York-White Plains-Wayne, N.Y.-N.J., led the nation as the least affordable major housing market during the third quarter of 2011. In New York, 23.3 percent of all homes sold during the quarter were affordable to those earning the area's median income of $67,400. The New York metropolitan division has held the least affordable market position for the last 14 quarters.

Other major metro areas near the bottom of the affordability index included San Francisco-San Mateo-Redwood City, Calif.; Honolulu; Santa Ana-Anaheim-Irvine, Calif.; and Los Angeles-Long Beach-Glendale, Calif., respectively.

Ocean City, N.J., where 41.7 percent of the homes were affordable to families earning the median income of $70,100, was the least affordable of the smaller metro housing markets in the country during the third quarter. Other small metro areas ranking near the bottom included Santa Cruz-Watsonville, Calif.; San Luis Obispo-Paso Robles, Calif.; Santa Barbara-Santa Maria-Goleta, Calif.; and Brownsville-Harlingen, Texas.

Please visit www.nahb.org/hoi for tables, historic data and details.

EDITOR'S NOTE: The NAHB/Wells Fargo HOI is a measure of the percentage of homes sold in a given area that are affordable to families earning that area's median income during a specific quarter. Prices of new and existing homes sold are collected from actual court records by First American Real Estate Solutions, a marketing company. Mortgage financing conditions incorporate interest rates on fixed- and adjustable-rate loans reported by the Federal Housing Finance Board.

The NAHB/Wells Fargo Housing Opportunity Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public.

House Price Estimator Shows Value of Homes'Physical Features, Neighborhood Characteristics

WASHINGTON, Nov. 7--According to an online house price estimator and economic model just updated by the National Association of Home Builders (NAHB), a third full bathroom is the one feature that can have the greatest impact on the value of a standard new single-family detached house in a Southern suburb, increasing the estimated price by about $43,000.

The estimator enables builders, developers, prospective home buyers and home owners to see the impact that various physical features might have on the price of a home.

"In an economic environment where consumers are particularly price-and value-conscious, this is an important resource for assessing key features and characteristics that help determine housing prices," said NAHB Chairman Bob Nielsen, a home builder from Reno. Nev.

"To get the most out of the estimator, those using it need to understand that the nation's housing marketplace is actually comprised of thousands of local markets and submarkets, with their own dynamics," he said.

The estimator "shows what households are looking for in their homes and zeroes in on basic factors that enable Americans to shape and improve their lives through their individual housing choices," Nielsen said.

Looking broadly at the four principal Census regions of the country and the urban status of areas - central city, suburb or non-metro - the estimator finds a general tendency for house prices to be higher in the Northeast and West, as well as in central cities and suburbs.

The price tends to be lowest for homes built outside of a metro area, although some regional variation exists regardless of urban status.

The model estimates that the standard new home will cost more than $500,000 if it's built in a suburb of one of the large metro areas in California, but only about $155,000 if it is located outside of a metropolitan area in the Midwest region.

The standard new single-family detached home is defined by features based primarily on averages or medians from the Census Bureau's Survey of Construction. Among those features: the home has 2,150 square feet of living space, two full bathrooms and one half bath, three bedrooms, a garage, central air conditioning, a fireplace, a separate dining room and three miscellaneous rooms. The home is also in a neighborhood where satisfactory shopping (such as grocery or drug stores) is available within 15 minutes.

In general, the estimator finds that suburbs show higher prices than their companion central cities, which include the areas inside the city limits and not just a central business district or downtown area.

"Because the model uses data from the Census Bureau's American Housing Survey, which contains somewhat limited geographical detail, the results show averages across a broad region rather than estimates for a particular house in a specific location," said Paul Emrath, NAHB's vice president for survey and housing policy research.

"The model captures the impact of various features in considerable detail, but no model or data base can capture all the features that influence house prices," he said. "For that reason, a home owner shouldn't think that the addition of a certain feature will necessarily increase the cost of their home by the amount specified by the estimator."

The price estimator, which can be accessed on computers with Microsoft Excel, can be useful in a variety of settings, he said. Possible uses include: helping builders determine if the cost of providing a particular amenity will be valued by consumers, giving prospective home buyers a rough idea of likely price differences for various home sizes and amenity packages, enabling customers of remodelers to approximate how much a job would add to the value of their home and helping developers price neighborhood characteristics to evaluate the desirability of potential building sites.

The economic model for the price estimator shows that with no modification, the estimated average price of the standard new home in a Southern suburb is $203,874. Moving that home to an otherwise similar neighborhood on the waterfront increases its estimated price by nearly $90,000. And proximity to adequate public transportation raises the estimated price by about $26,000.

Other neighborhood features, the model finds, can reduce the price of the home. The presence of an abandoned building within half a block, for instance, reduces the estimated price of the standard new home in a Southern suburb by about $28,000. Bad roads, odors, lack of adequate shopping, buildings with metal bars on their windows and litter each reduce the estimated price by more than $6,000.

Looking at the physical features of the home, adding 500 square feet of living space with no other changes increases the estimated price of that home by roughly $13,000. Adding another bedroom or miscellaneous room increases the estimated price by less than $10,000. Eliminating the fireplace reduces the estimated price by about $24,000.

NAHB's Single-Family Detached House Price Estimator can be found on NAHB's website at: www.nahb.org/housepriceestimator.

To run the estimator, Microsoft Excel's security setting must be adjusted to allow macros to run. For those who encounter trouble getting the estimator to run initially, NAHB suggests that they try accessing it from a different computer with a different browser.

A special study from NAHB Housing Economics - "NAHB House Price Estimator Updated" - is available at: www.nahb.org/updatedestimator.

NAHB URGES CONGRESS TO RESTORE HIGHER LOAN LIMITS

To help mend the struggling housing market, provide affordable mortgages for creditworthy home buyers and stabilize home values, which are all critical to creating jobs and helping the sputtering economy, Congress must act to reinstate the higher conforming loan limits that expired on Sept. 30.

The Senate has already approved a plan to reinstate and extend the higher loan limits for an additional two years. In light of the continuing weakness in the overall housing market, it is incumbent upon the House  to follow suit to ensure that millions of homes will still be eligible for Fannie Mae, Freddie Mac and FHA funding.

Last month, the national ceiling for mortgages securitized by Fannie Mae and Freddie Mac or insured by the FHA dropped from $729,750 to $625,500 and the formula for establishing area loan limits became more restrictive, producing decreases in more than 650 counties in 42 states in addition to those bound by the national ceiling.

This ripple effect means that millions of homes nationwide, including a substantial number in our local community, are now ineligible for Fannie Mae, Freddie Mac and FHA funding. In order to obtain a home loan, buyers will be subject to higher mortgages interest rates, fees and downpayments and more stringent credit standards.

Restoring the higher loan limits will provide home owners and home buyers with safe and affordable financing while providing a much-needed boost to housing markets all around the country.

If the House fails to act, the results could prove catastrophic for our local and national economy. The current drop in mortgage loan limits will reduce housing demand and place downward pressure on home prices in our local market and other areas across the nation. In turn, this will trigger more foreclosures, impede job creation and cause the fragile economy to backslide into recession.

The stakes could not be higher. At a time when stabilizing home values is vital to bolster household wealth, spur job growth and get the flagging economy moving forward, the House must act responsibly and reinstate the higher loan limits.

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."

ASSAULT ON HOUSING

Today, the nation faces an unprecedented assault on housing that threatens to derail nearly 100 years of national policy promoting the value of homeownership, and the public remains largely unaware of the potential catastrophe that lies ahead:

·         A sharply limited availability of long-term, fixed-rate mortgages

·         A huge jump in the cost of mortgages

·         Minimum downpayments of 20 percent or more

·         A severe reduction in mortgage credit

One of the primary targets of this unjustified attack on housing is the mortgage interest deduction. This cornerstone of American housing policy has been in place since the inception of the tax code in 1913 and supports the aspirations of families at all income levels to become home buyers.

Although Americans overwhelmingly oppose any action by Congress to tamper with the mortgage interest deduction, according to the results of a recent poll conducted by the Republican and Democratic polling firms of Public Opinion Strategies and Lake Research Partners for the National Association of Home Builders, many lawmakers have expressed a willingness to eliminate or curtail this vital housing tax provision. Such a move would further depress home values, leaving more home owners with “underwater” mortgages larger than the value of their property and fueling even more foreclosures.

The polling also found that home owners and non-owners alike consider owning a home essential to the American Dream. An overwhelming 75 percent of those surveyed said that owning a home is worth the risk of the fluctuations in the market, 95 percent of the home owners said they are happy with their decision to own a home and 73 percent of renters said that owning a home is one of their goals.

Meanwhile, 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. The National Association of Home Builders 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.

Some members of Congress are actively pushing to abolish Fannie Mae and Freddie Mac and end the federal backstop for housing. Absent a federal role to help absorb market risk, private lenders would increase interest rates and fees on all types of available financing options. The 30-year, fixed-rate mortgage, the major housing finance tool for most Americans, would become increasingly scarce and much more costly, pricing many credit-worthy borrowers out of the marketplace.

Complicating the situation, the federal government is looking to trim back the Federal Housing Administration’s participation in the market, which would further limit the availability of low downpayment mortgages.

As policymakers debate the housing finance and budget issues that will impact job creation and future growth, they must understand the important role that housing plays in the U.S. economy. Building 100 average single-family homes generates more than 300 jobs and nearly $9 million in taxes and revenue for state, local and federal governments.

The federal proposals now under consideration would reverse national housing policies that have helped generations of American households to own their homes, enter the ranks of the middle-class, build strong and stable neighborhoods and communities and provide a steppingstone to greater long-term financial security.

For these reasons, it is important that policymakers be fully aware of the depth and breadth of housing’s many contributions to American society and that owning a home is a strong core value for most American households.

Builders Urge Congress to Maintain Ongoing Federal Role to Ensure a Healthy Mortgage Market

WASHINGTON, May 26 - With some members of Congress actively pushing to abolish Fannie Mae and Freddie Mac and end the federal backstop for housing, the National Association of Home Builders (NAHB) told Congress today that maintaining an appropriate level of government support is absolutely essential to preserve financial stability.

Testifying before the Senate Banking Committee, NAHB First Vice Chairman Barry Rutenberg, a home builder from Gainesville, Fla., said that absent a federal role to help reassure mortgage market investors, the cost and availability of mortgage credit would be subject to unpredictable volatility.


"The historical track record from the 1998 Russian crisis to the tragedy of Sept. 11 clearly shows that the private sector is not capable of providing a consistent and adequate supply of housing credit without a government backstop," said Rutenberg. "Therefore, as the private market transitions to assume a greater responsibility, there must be a predictable, permanent federal role in order to ensure a consistent supply of mortgage liquidity and to allow rapid and effective responses to market dislocations and crises."
While NAHB strongly supports efforts to modernize the nation's housing finance system, it is critical that any reforms be well-conceived, orderly and phased in over time.

NAHB opposes legislation pending in the House and Senate that would effectively wind down the operations of Fannie Mae and Freddie Mac without offering a clear vision for the future housing system and a non-disruptive transition to a new secondary market framework. Similarly, NAHB believes that more than a dozen short-term legislative proposals offered by House Republican lawmakers to reduce the support Fannie Mae and Freddie Mac provide to the mortgage markets represent a piecemeal approach to reform that would disrupt the housing market and could push the nation back into a deep recession.

New legislative efforts would take a very different tack from these proposals. Recent bipartisan legislation (H.R. 1859) introduced by Reps. John Campbell (R-Calif.) and Gary Peters (D-Mich.) would replace Fannie Mae and Freddie Mac with five private companies that would issue mortgage-backed securities that have government backing. Legislation currently being developed by Rep. Gary Miller (R-Calif.) would also include a predictable government role in the secondary mortgage market to preserve financial stability in the market and maintain a stable housing sector.

"NAHB views the introduction of H.R. 1859 and Rep. Miller's draft legislative proposal as very positive developments as debate on the future of the housing finance system moves forward in Congress," said Rutenberg. "Maintaining a continuing and appropriate level of government support is necessary to promote investor confidence and ensure liquidity and stability for homeownership and rental housing."
Absent a federal backstop for housing, Rutenberg warned that the 30-year, fixed-rate mortgage, the major housing finance tool for most Americans, would become increasingly scarce and much more costly, pricing many creditworthy borrowers out of the marketplace. Similarly, the availability of financing for multifamily housing would fall woefully short of the growing need.

Qualified Residential Mortgages

Also of great concern to NAHB are proposals unveiled in late March by six federal agencies that would establish a "Qualified Residential Mortgage" (QRM) standard featuring a minimum 20 percent downpayment on a home loan. Requiring 20 percent down would keep homeownership out of reach for most first-time home buyers and middle-class households.

About 62 percent of first mortgages taken out to purchase a home would not have qualified under the proposed QRM standard because they had downpayments of less than 20 percent, according to LPS Applied Analytics, a mortgage data firm.

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.

"If buyers are denied access to affordable housing credit, the shadow inventory of foreclosed homes will not be drawn down, a housing recovery will not take hold and economic growth will stall," said Rutenberg.
Moreover, low-downpayment home loans have been originated safely for decades and are not what drove the housing lending crisis, added Rutenberg.

"Subprime, no-doc and other alternative mortgage products crashed our economy," he said. "We believe the Administration and regulators must acknowledge this fact and offer a new plan that ensures a safe and healthy mortgage market and keeps homeownership affordable for working American families."

HOUSING AFFORDABILITY RISES TO RECORD LEVEL, TIGHT FINANCING CONTINUES TO CONSTRAIN SALES

WASHINGTON, May 25 - Nationwide housing affordability during the first quarter of 2011 rose to its highest level in the more than 20 years it has been measured, according to National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) data released today.

The HOI indicated that 74.6 percent of all new and existing homes sold in the first quarter of 2011 were affordable to families earning the national median income of $64,400. This eclipsed the previous high of 73.9 percent set during the fourth quarter of 2010 and marked the ninth consecutive quarter that the index has been above 70 percent. Until 2009, the HOI rarely topped 65 percent and never reached 70 percent.

"With interest rates remaining at historically low levels, today's report indicates that homeownership is within reach of more households than it has been for more than two decades," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. "While this is good news for consumers, home buyers and builders continue to confront extremely tight credit conditions, and this remains a significant obstacle to many potential home sales."

Syracuse, N.Y., was the most affordable major housing market in the country during the first quarter of the year. In Syracuse, 94.5 percent of all homes sold were affordable to households earning the area's median family income of $64,300.

Also ranking near the top of the most affordable major metro housing markets were Youngstown-Warren-Boardman, Ohio-Pa.; Indianapolis-Carmel, Ind.; Warren-Troy-Farmington Hills, Mich.; and Toledo, Ohio.

Among smaller housing markets, the most affordable was Kokomo, Ind., where 98.6 percent of homes sold during the first quarter of 2011 were affordable to families earning a median income of $61,400. Other smaller housing markets near the top of the index included Monroe, Mich.; Cumberland, Md.-W.Va.; Elkhart-Goshen, Ind.; and Springfield, Ohio.

New York-White Plains-Wayne, N.Y.-N.J., led the nation as the least affordable major housing market during the first quarter of 2011. In New York, 24.1 percent of all homes sold during the quarter were affordable to those earning the area's median income of $65,600. This marks the 12th consecutive quarter that the New York metropolitan division has held this position.

Other major metro areas near the bottom of the affordability index included San Francisco-San Mateo-Redwood City, Calif.; Los Angeles-Long Beach-Glendale, Calif.; Honolulu; and Santa Ana-Anaheim-Irvine, Calif., respectively.

San Luis Obispo-Paso Robles, Calif., where 47.6 percent of the homes were affordable to families earning the median income of $72,500, was the least affordable of the smaller metro housing markets in the country during the first quarter. Other small metro areas ranking near the bottom included Santa Cruz-Watsonville, Calif.; Laredo, Texas; Ocean City, N.J; and Santa Barbara-Santa Maria-Goleta, Calif.

Please visit www.nahb.org/hoi for tables, historic data and details.
EDITOR'S NOTE: The NAHB/Wells Fargo HOI is a measure of the percentage of homes sold in a given area that are affordable to families earning that area's median income during a specific quarter. Prices of new and existing homes sold are collected from actual court records by First American Real Estate Solutions, a marketing company. Mortgage financing conditions incorporate interest rates on fixed- and adjustable-rate loans reported by the Federal Housing Finance Board.
The NAHB/Wells Fargo Housing Opportunity Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public.