Statement from NAHB Chairman Barry Rtenberg on the Actuarial Review of the FHA Mutual Mortgage Insurance Fund

Statement from NAHB Chairman Barry Rutenberg on the Actuarial Review of the FHA Mutual Mortgage Insurance Fund

WASHINGTON, Nov. 16 - Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla., today issued the following statement on the latest actuarial review of the FHA mutual mortgage insurance fund:

"In light of today's report, there will certainly be discussion about altering the structure or role of the FHA. We would urge policymakers to proceed cautiously.

"The FHA was created during the Great Depression to promote stability in the housing marketplace and allow first-time buyers and middle class families to attain the dream of homeownership. Over the ensuing 78 years, the agency has successfully achieved its mission at no cost to taxpayers. The fact that the FHA finds itself in this position now, as opposed to four years ago during the height of the financial meltdown, is testament to its ability to meet its mission in these difficult economic times.

"While there is no doubt that the housing finance system needs to be reformed, the contributions that the FHA has made during this economic downturn underscore the need for a government backstop for both the primary and secondary mortgage markets. In times of crisis, private financial institutions have fled the marketplace and consistently failed to step up to the plate. Without government support for home purchasing and refinancing, the nation's mortgage markets will grind to a halt, throwing the economy back into recession.

"Given the significant role that housing plays in the economy, policymakers need to take a long-term, holistic approach to housing finance reform and carefully gauge how it affects other efforts under way to get the nation's fiscal house in order and achieve long-term economic growth."

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ABOUT NAHB: The National Association of Home Builders is a Washington-based trade association representing more than 140,000 members involved in remodeling, home building, 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.

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Statement from NAHB Chairman Bob Nielsen on the Need to Reinstate Loan Limits

WASHINGTON, Nov. 15 - Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev., issued the following statement regarding the need for Congress to pass legislation to reinstate the higher loan limits for the Federal Housing Administration that expired on Sept. 30:

"Legislation pending in the House and Senate will restore the higher mortgage loan limits for the Federal Housing Administration and is essential to help stabilize the nation's housing financial markets.

"The FHA program is fully self-supporting, and a great example of a public-private partnership with lending institutions. Restoring the loan limits will provide millions of potential consumers in markets throughout the nation access to safe, affordable mortgage financing.

"To help mend the struggling housing market, stabilize home values, provide constancy while private investors re-enter the market and ensure that millions of creditworthy home borrowers can access the best possible mortgage rates, Congress must support this bill to help American families and get the lackluster economy moving forward."