(WASHINGTON, DC) - To insure that there is sufficient capital to
support mortgage lending to qualified borrowers, the National
Association of Realtors® has adopted principles that recommend
continued government involvement in the secondary mortgage market.
the leading advocate for housing issues, NAR developed these principles
for consideration by the 111th Congress and the new presidential
administration in light of disruptions in the credit markets and the
conservatorship of Fannie Mae and Freddie Mac," said NAR President Charles
McMillan, a broker with Coldwell Banker Residential Brokerage in
Dallas-Fort Worth. "NAR believes that the federal government must
continue to play a role in the mortgage markets to insure the continued
flow of capital."
NAR's Presidential Advisory Group on
Government Sponsored Enterprises developed the new principles to
encourage a strong, robust financing environment for homeownership. The
principles call on the government to ensure an active secondary
mortgage market; support affordable mortgage rates for qualified
borrowers; establish reasonable affordable housing goals; require that
institutions pass on the advantages of lower borrowing costs by making
lower rates on mortgages available for qualified borrowers; require
sound underwriting standards, and transparency and soundness with
respect to disclosure and structuring of mortgage related securities;
and establish rigorous oversight.
"Safe and affordable mortgages
must be available throughout the nation," said McMillan. "This requires
that the higher loan limits passed in the economic stimulus bill
earlier this year be made permanent. The federal government must also
insure that there is sufficient capital to support mortgage lending in
all types of markets."
"Realtors® look forward to working with
the new Congress and administration to help stabilize the housing
industry and the U.S. economy, and to make sure we stem the rise of
foreclosures and keep more families in their homes," said McMillan