FHA has played a fundamental role in helping stabilize the nation's housing market; however, FHA reform is critical for keeping the housing and economic recovery on the right track.
This was Assistant Secretary of the U.S. Department of Housing and Urban Development and Federal Housing Administration Commissioner David H. Stevens' message to several thousand Realtors gathered at a three-day real estate summit held during the National Association of Realtors Midyear Legislative Meetings & Trade Expolast week in Washington, D.C. Leadership from the Silicon Valley Association of Realtors, including 2010 President Jeff Bell and President-elect Gene Lentz, attended the summit.
Stevens credited increased home buyer demand, brought about by the home buyer tax credits, and the federal government's purchase of mortgage-backed securities for helping restore consumer confidence and get the economy moving.
"Home prices and sales are beginning to recover, inventories are down, private capital is beginning to re-emerge, investor confidence is coming back and the job market is showing signs of improvement. These all show renewed confidence in the housing market. We need to finish the job now and make the housing recovery sustainable and keep the economy on the right track," said Stevens.
Despite the signs of improving stability, Stevens said that the housing market continues to face challenges, mainly from unemployment and homeowners with negative equity. Stevens said helping underwater borrowers is critical to stemming the tide of foreclosures. Recently announced revisions to FHA and the Home Affordable Modification Program will help stabilize home prices and keep more people in their homes. FHA refinances will help homeowners write down principal balances or modify and restructure loans into safer, sustainable products. HAMP changes include a forbearance, or temporary assistance, for unemployed homeowners while they look for work.
Stevens said FHA continues to play a pivotal role in housing recovery and reemphasized reform is critical. "After the housing market crashed, FHA had to step in to play a vital role. Over the past three years, FHA reacted by increasing its market share dramatically. There would be no housing market recovery without FHA; however, the program is at risk," said Stevens.
Stevens asked Realtors at the meeting to lend their support for the passage of H.R. 5072, the "FHA Reform Act of 2010," which would allow FHA to hold lenders accountable for the loans they underwrite and originate, and give FHA the flexibility to respond to changes in the marketplace by granting additional authority to adjust the annual mortgage insurance premium and reduce borrowers' upfront mortgage insurance premiums.
More than 7,000 Realtors gathered at the annual Realtors Midyear Legislative Meetings & Trade Expo. During the week, they met with legislators on Capitol Hill to urge action toward stabilizing the U.S. mortgage finance delivery system, strengthening housing stability, and improving liquidity for the commercial real estate market.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.