Congressman Frank Notes Realtors(R)' Importance to Economic Stability

Chairman of the House Financial Services Committee Barney Frank, D-Mass., today addressed the important role that Realtors(R) and the housing market play in the overall U.S. economy at the National Association of Realtors(R) Midyear Legislative Meetings & Trade Expo, here through Saturday.

Chairman Frank reiterated his support for passing 'responsible legislation and regulation that will bring stability to the housing market and help stem the rising rate of foreclosures.'

'We want to stabilize the market, slow down the rate of foreclosures...We are not looking to take over the private sector's role, but we need to deal with the mortgage crisis and help troubled homeowners,' said Frank. 'I can't imagine that there is anyone remaining that doesn't believe housing is important to our economy. We need to develop positive solutions that will ensure these policy failures do not occur again.'

The House passed a bipartisan bill last week that should have a major impact on the housing and mortgage industry. 'As the leading advocate for housing issues, NAR applauds Chairman Frank's leadership and we hope that the Senate will move quickly to finalize a bill and send it to President Bush, regardless of his stated objections to some parts of the legislation,' said NAR President Dick Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif.

Chairman Frank's remarks focused on the need to increase the public sector's role in solving the financial crisis with government participation. Frank believes that the roles of FHA, Fannie Mae, Freddie Mac and the Federal Home Loan Board must be increased to help move the country through this 'national crisis.'

According to Chairman Frank, the number of FHA loans fell from 776,380 in 2001 to only 294,777 in 2005. 'All we want to do is get back to where we were,' Frank said. The Realtors(R) have long been advocating for FHA modernization to make it a viable option to subprime loans. Frank expressed a willingness to do all that he can to pass FHA modernization and permanent increases to conforming loan limits.

The House-passed bill, H.R. 3221, the American Housing Rescue and Foreclosure Act, includes FHA Modernization that will simplify and make FHA-backed mortgages more available. Other important components of the bill that NAR supports are reform to government-sponsored enterprises Fannie Mae and Freddie Mac and a program to expand and stabilize FHA that would allow more homeowners to refinance their existing mortgages and keep their homes. In addition, a proposed tax credit of $7,500 for first-time home buyers included in the bill would also help stimulate the weak housing market, as would permanent increases to both GSE and FHA loan limits.

Concurring with the Realtors(R)' policy position, Frank noted that not making permanent the loan limit increases passed in the President's stimulus package would negatively impact the already fragile housing and mortgage markets.

Chairman Frank recognized the grassroots power of Realtors(R), thanked them for the difference they make in many people's lives, and acknowledged the important role Realtors(R) play in communities.

The National Association of Realtors(R), 'The Voice for Real Estate,' is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

Information about NAR is available at www.realtor.org. This and other news releases are posted on 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? 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 National Association of Realtors,
+1-202-383-1007, mtrupo@realtors.org

Web Site: http://www.realtor.org/