Realtors Applaud DeMarco for Heeding Warnings
Leaving GSE loan limits as-is, is good for the national real estate market, and certainly good for Ohio real estate. I'm glad that the NAR (the National Association of Realtors) is pro-active in not only protecting the rights of home owners, but also watchful and protective for current and future buyers. Considering the severe downturn of real estate markets across the U.S and Ohio in the last several years, modifying these limits would be a slippery slope with potentially huge, unwelcome consequences.
You could even compare modifying these limits to the fiasco that sub-prime lending caused handing out loans like candy resulting in huge numbers of foreclosures when the economy took a dip. Washington (November 26, 2013) – The following is a statement by National Association of Realtors® President Steve Brown:
"Realtors® welcome today's announcement from the Federal Housing Finance Agency that the current limits on conforming loans will remain in effect until further notice. As the leading voice for homeownership, NAR opposes lowering the ceiling on loans eligible for backing by the government-sponsored enterprises. Lower loan limits would increase costs for consumers and reduce their access to conventional mortgages.
"In September, when reports surfaced that FHFA Acting Director Edward DeMarco was considering using conservator authority to lower loan limits, NAR cautioned that such an experiment would jeopardize home ownership for many creditworthy buyers, especially first-time home buyers who are often less likely to meet the 20 percent minimum down payment requirement.
"There is already enough turbulence in the regulatory environment for mortgage lending. In January 2014, many changes stemming from the Dodd-Frank Act will go into effect, including the ability-to-repay requirement. In addition, risk retention regulations remain in flux, including the definition of a Qualified Residential Mortgage. Lowering loan limits at this time would create even more confusion and uncertainty, and we would run the risk of reversing the progress that's been made in the economic recovery."
The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
Ohio Real Estate and National Real Estate Markets Need Stability
What we really need is continued, sustainable steady growth. Some entities out there seem to want to throw a lot of wood on the fire, when it should just be stoked and not artificially pumped up. Sure, we've made a lot of progress, but are still facing many issues. So far, so good, but I agree with NAR, the careful and practical ways to full recovery are best.
Juanita Limes - Your Greater Dayton Area Ohio Realtor - Give me a shout for all your real estate needs,
937-776-6903 or just email me.