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."

Congress must act to reinstate the higher conforming loan limits that expired on Sept. 30

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, .

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.

Media Advisory: NAHB to Host Media Teleconference on the Need to Raise Conforming Loan Limits

November 7, 2011 - The National Association of Home Builders (NAHB) will host a media teleconference tomorrow to discuss the need for Congress to support the extension of higher loan limits for the GSEs and FHA.


WHEN:

Tuesday, Nov. 8, 2011

2:00 p.m. ET

WHAT:

The Senate recently passed a bill to reinstate higher loan limits for Fannie Mae, Freddie Mac and the Federal Housing Administration that expired on Sept. 30. The limits were raised to a level where they are now usable to those in higher priced markets throughout the country. While the Senate has acted to prevent causing further damage to the local housing markets in the U.S., The House of Representatives has yet to take action on this important issue.

NAHB will host a media teleconference on Tuesday to discuss the importance of Congress ensuring that this measure is enacted into law. NAHB tax expert, Robert Dietz, will break down the data to look at the impact of lower GSE and FHA loan limits by county. He will discuss the spillover effect of home buyers in all price brackets, and how the lower limits place downward pressure on home prices in major markets. Jim Tobin, NAHB Chief Lobbyist will explain the political implications of the lower loan limits and the impact on a housing recovery.

Media participants will have the opportunity to ask questions at the conclusion of the call. To ask a question during the Q&A portion of the call, please dial *1 on your phone to be entered into the phone queue.

WHO:

· Jim Tobin, Chief Lobbyist, NAHB

· Robert Dietz, Assistant Vice President, Tax and Policy Issues, NAHB



TO PARTICIPATE:

Please dial 1-888-283-6901 or 1-719-234-0008 (International Participants). Please let the operator know that you are joining the "NAHB/Conforming Loan Limits Call" and provide them with the access code code 4718988.