WASHINGTON, Feb. 7 /PRNewswire-USNewswire/ -- The National Association
of Realtors(R) today expressed ongoing support for legislative reform to
Fannie Mae and Freddie Mac that would help stabilize the housing market and
improve liquidity to the secondary nonconforming market. NAR stressed the
importance of permanently increasing the loan limits as part of any reform
package; that will help encourage healthier conditions in the housing
market and strengthen the national GDP.
In testimony submitted to the U.S. Senate Committee on Banking, Housing
and Urban Development, NAR reiterated its position that legislative reform
to the government sponsored enterprises (GSEs) should focus principally on
regulating safety and soundness and expanding the role Fannie Mae and
Freddie Mac play in the secondary mortgage market. "We are pleased that
Chairman Dodd, D-Conn., and Sen. Shelby, D-Ala., agreed to hold a hearing
on the important issue of enhancing the GSE regulatory system," said NAR
President Richard Gaylord, a broker with RE/MAX Real Estate Specialists in
Long Beach, Calif.
"Fannie and Freddie are our partners in the housing industry and are
important to stabilizing and strengthening the housing market," Gaylord
said. NAR stated that any GSE reform should include establishing a strong
regulator and GSE governance; permanently increasing conforming loan
limits; reviewing the housing mission; providing flexibility in new program
approval and increasing the portfolio caps.
NAR's research found that simply increasing the loan limits for Fannie
Mae and Freddie Mac to $625,000 would permit as many as 300,000 families to
enter the housing market, reduce foreclosures by as many as 210,000 and
allow as many as 500,000 jumbo loan borrowers to refinance to lower cost
loans, saving these people $274 to $411 a month. "I can think of no other
reform that could have such a quick and profound impact on the housing
industry and our national economy. NAR urges the Senate to work quickly to
pass full GSE reform," said Gaylord.
The National Association of Realtors(R), "The Voice for Real Estate,"
is America's largest trade association, representing more than 1.3 million
members involved in all aspects of the residential and commercial real
estate industries.
Information about NAR is available at http://www.realtor.org. This and other
news releases are posted in the Web site's "News Media" section in the NAR
Media Center.
REALTOR(R) is a registered collective membership mark which may be used
only by real estate professionals who are members of the NATIONAL
ASSOCIATION OF REALTORS(R) and subscribe to its strict Code of Ethics. Not
all real estate agents are REALTORS(R). All REALTORS(R) are members of NAR.
SOURCE National Association of Realtors
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Related links:
http://www.realtor.org
CONTACT:
Mary Trupo of National Association of
Realtors, +1-202-383-1007, mtrupo@realtors.org
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