FHA Mortgage Loans And The Housing Rebound

This is the message that the National Association of Realtors® (NAR) recently delivered to the Senate Appropriations Committee about the importance of the FHA mortgage loans. “Without FHA financing, families would be unable to purchase homes and communities would suffer from continued foreclosures and blight,” said Lennox Scott, a member of NAR’s Real Estate Advisory Board.

Scott also shared the NAR's belief about the importance of FHA loans and concern for the safety and soundness of its programs due to its dramatic growth over the past year. “We believe that FHA has done a good job stepping up to today’s market challenges. However, along with the dramatic growth in market share comes greater responsibility and the need for increased infrastructure and staff,” Scott said. Since late 2006, FHA has handled an increase in loans on both refinances and new purchase money by over 30%.

“The U.S. Department of Housing and Urban Development has made a number of important and valuable changes to FHA over the years that has enabled it to stand up to the challenges of today’s mortgage market,” Scott said. “FHA is now a principal source of financing for millions of America’s families, and without it, the economic crisis would be significantly prolonged. This is why it is so important to invest in FHA improvements and advancements.”

The NAR vowed to lobby Congress for FHA reforms that will help guarantee its success, availability, and safety of FHA mortgage insurance programs. For more information on FHA mortgage loans please go to FHA section of important facts.

The author Hank Bailey is real estate broker in the state of Georgia. He blogs at athensproperties.wordpress.com/.

hankbailey@kw.com
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