PR Newswire via NewsEdge Corporation :
WASHINGTON, April 9 /PRNewswire/ -- In light of the many families being
affected by negative subprime mortgages, the National Association of
Realtors(R) encouraged the Department of Housing and Urban Development to act
quickly to change the FHA mortgage insurance program to enable more homeowners
and their families to keep their homes.
In a letter sent to HUD Secretary Alphonso Jackson, NAR President Pat
Vredevoogd Combs strongly urged action by HUD to change FHA rules and waive
the requirement that a homeowner's mortgage be "current" in order to refinance
into an FHA loan product.
"Many homeowners who were able to make timely payments under the original
terms of their loan are finding it difficult to make payments after rate
adjustments," said Combs. "We believe FHA can design a mechanism where credit
worthy borrowers could refinance subject to prudent guidelines, and therefore
avoid losing their homes."
"As the nation's leading advocate for homeownership, NAR believes that all
avenues should be reviewed and that paradigms should be shifted. The goal for
all -- government, lenders, banks, individuals, and Realtors(R) -- should be
to help keep people in their homes and to avoid or minimize foreclosures,"
Combs said earlier this month.
In recent days, it has been reported that various lenders have expressed a
willingness to engage in this program to avoid costly foreclosure proceedings.
This would not be a bailout for lenders, but would be a vehicle for helping
prevent a number of Americans from losing their homes. "NAR believes in a
strong FHA and would support efforts to ensure that only borrowers who truly
have the capacity to repay receive the opportunity to refinance under such
changes," said Combs.
NAR encouraged HUD and the FHA to undertake a "robust public education
campaign" to promote foreclosure prevention by raising the awareness of FHA
and HUD programs. NAR has partnered with HUD and FHA in the past to create and
distribute brochures designed to inform potential homebuyers about the various
FHA programs. NAR also continues to be a consistent advocate for FHA
modernization, so as to keep the products and services they offer pertinent to
today's consumers and housing market.
"We believe that with some minor regulatory adjustments to the FHA
program that a significant subset of borrowers facing the prospect of
foreclosure could safely refinance into an FHA mortgage. We are committed to
continue our efforts with HUD and FHA. We not only want to see people achieve
the American dream of home ownership, but also we want them to keep it," said
Combs.
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
CONTACT: Mary Trupo of the National Association of Realtors, +1-202-383-1007, mtrupo@realtors.org
<<PR Newswire -- 04/10/07>>