NAHB: Home builders support FDIC foreclosure relief planMortgagePress.comFDIC, National Association of Home Builders, NAHB, Sheila Bair, TARP, Jerry Howard
The National Association of Home Builders (NAHB) has expressed
strong support for a plan put forth by Federal Deposit Insurance
Corporation (FDIC) Chairman Sheila Bair to reduce foreclosures,
noting that it would help to keep people in their homes and avoid
further surges in the inventory of unsold homes.
"The FDIC plan to use TARP funds to bolster foreclosure relief
efforts is a creative approach to help strapped borrowers on the
verge of losing their homes," said NAHB President and CEO Jerry
Howard. "Effective foreclosure relief, along with a stimulus
program that includes a meaningful tax credit and aggressive
interest-rate buy-down program, are necessary to stabilize the
housing market, prop up home values and turn the economy
Under the FDIC proposal, lenders would agree to reduce the
interest rate, defer some of the amount owed or extend the
repayment period so that borrowers could afford to stay in their
homes. In return, the government would guarantee that mortgage
holders would be compensated for a portion of any losses should the
home owner default on the reconfigured loan.
"NAHB believes that such an approach is essential in order to
produce a significant reduction in impending foreclosures and
commends the FDIC for its leadership in this area," said Howard.
For more information, visit www.nahb.com.