The National Association of Mortgage Brokers (NAMB)—the Association of Mortgage Professionals, has announced its support of the Obama Administration in its efforts to seek out ways to address the nationwide housing crisis. NAMB supports three areas in the Obama Administration’s recommendations that will help bring solutions to the current mortgage crisis and assist the U.S. economy in its return to normalcy.
“When this plan is implemented and homeowners are given the opportunity to refinance their homes, it will create capacity issues,” said Donald J. Frommeyer, president of NAMB. “It is imperative that any refinance program that is created, revised and offered to responsible homeowners is available to all origination channels so that they have the ability to help consumers with their loan. This initiative will not only allow the industry the capacity it will need to process the increase in refinances, but it will allow the consumer to shop the most competitive lender with the best service in their own neighborhood.”
First, NAMB supports the Administration’s recommendation to help responsible, qualified homeowners with non-government-sponsored enterprise (Fannie Mae and Freddie Mac) loans who cannot refinance their home because their current balance exceeds the value of their homes to take advantage of historically-low rates. This portion of the plan will help responsible homeowners save an estimated $3,000 per year, according to the White House, and this money can be used to help stimulate the economy toward a full recovery. NAMB is concerned that relaxed underwriting requirements will be needed to refinance these homes.
“It is important if we use the Federal Housing Administration’s loan programs for these refinances, that we make sure the new loan is suitable for the consumer and the consumer has the ability to repay,” said John H.P. Hudson, NAMB Government Affairs Committee chairman. “This will ensure that the FHA program remains strong for future homeowners to utilize fixed-rate financing as a tool in purchasing their future home and as a refinancing option for their current home.”
Second, NAMB enthusiastically endorses the Administration’s Homeowner’s Bill of Rights protecting the consumer, and helping to clarify and streamline the mortgage process for the consumer in obtaining a loan. As many homeowners have experienced, this process can be confusing and rigorous. The proposed Bill of Rights will help homeowners complete their home loans efficiently.
And third, it is important, as the Administration recommends, that more homes are made available for sale to investors. These homes can be made available for rent to those displaced by the current economic environment, an environment that has created a shortage of affordable housing in some areas of our country.
NAMB looks forward to working with the Obama Administration and the Consumer Financial Protection Bureau (CFPB) in advising on the sound implementation of the Administration’s recommendations to address the housing crisis.
