ICBA Urges Quick Passage of First-Time Homebuyer Tax CreditMortgagePress.comICBA, Congress, first-time homebuyer tax credit, Nine-Point Economic Stimulus Plan
With new data showing home prices and sales continuing to
plummet, the Independent Community Bankers of America (ICBA) has
urged Congress to quickly pass a first-time homebuyer tax credit as
part of the pending economic stimulus legislation advancing in
Congress. In March, the year-over-year median home price declined
by the largest amount in nearly four decades, while home sales
plunged to a 16-1/2 year low.
"ICBA is pleased that a version of a homebuyer tax credit is in
both the House and Senate housing stimulus packages, but it is now
time to get the job done," said Camden Fine, ICBA president and
CEO. "To that end, it is important to keep any homebuyer tax credit
clean and simple and model it after the successful District of
Columbia first-time homebuyer tax credit. The IRS has the forms and
procedures already in place for a proven $5,000 homebuyer tax
credit in D.C. Now we need this same credit to apply nationwide to
help homeowners throughout the country."
In January, ICBA introduced a Nine-Point Economic Stimulus Plan
that calls for a one-year $5,000 first-time homebuyer tax credit to
help jumpstart stalled home sales, reduce the 10-month supply of
unsold homes, prevent plummeting home values, and stem growing
The broad credit markets have been severely damaged by the sharp
decline in housing prices and the collateral real estate
represents. When home prices drop sharply and people owe more on
their mortgages than their homes are worth, foreclosures become a
growing economic problem. Despite the Federal Reserve Boards sharp
reduction in interest rates, recent data for March from the U.S.
Department of Commerce showed home sales dropping nearly 20 percent
in the Northeast, 12.9 percent in the West, 15.5 percent in the
Midwest and 4.6 percent in the South.
The ongoing sharp decline in real estate values must be
addressed before genuine stability can be achieved in the broad
credit markets and economy, said Fine.
For more information, visit www.icba.org.