New Federal Housing Bills To Assist Homeowners

The House and Senate passed legislation concerning the housing crisis, with a provision to help homebuyers, homeowners and borrowers in the face of foreclosures, to get back on their feet during the current economic slowdown. However, the temporary tax credit for home purchasing is the one provision that stands out as an effective way of increasing demand for buying property.

Federal Bills Help Homeowners And NAHB

The National Association of Home Builders (NAHB) is pleased with the legislation. “The bills passed this morning…an important step in the process of enacting comprehensive housing legislation that will shore up housing and the economy,” said CEO of NAHB Jerry Howard. Regarding this new tax provision, Howard said, “enacting a broad, temporary tax credit for the purchase of a home would provide the best stimulus for housing and the economy.”

The Federal Reserve has already aggressively taken measures to alleviate financial trouble in both the housing and credit sectors, while the central bank has made funds available for investment banks in desperate need of credit. By increasing the credit, mortgage lenders and banks are able to entice buyers, thereby increasing housing sales and renegotiating loan contracts with homeowners facing foreclosure.

Federal Housing Bills Assisting Borrowers And MBA

Besides getting a seal of approval from the NAHB, the Mortgage Bankers Association (MBA) showed support for the Senate legislation. “This bill contains a number of critically important provisions to help stabilize the mortgage and real estate market,” said Kieran P. Quinn, Chairman of the MBA. Among these provisions is modernizing the FHA and their loan policies, expanding mortgage revenue bond programs and giving housing and credit counselors more funding so borrowers know all the facts as they struggle to make loan payments.

“We look forward to working with leaders in the House to help stabilize the market and further assist at risk borrowers,” said Quinn. Howard added in a different statement, “These measures will help to avoid an economic downturn and stabilize financial markets globally.” With the market in flux, these provisions are sure to help give housing and the economy a much needed boost.