NAR supports rate freeze as key to protect homeowners

The National Association of REALTORS® has expressed support of President George W. Bush’s efforts to curb the increase in foreclosures due to irresponsible lending practices and complicated mortgage products by allowing modification of certain loans or freezing the interest rates for up to five years.

“The dream of homeownership should not turn into a family’s worst nightmare,” said NAR President Richard Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif. “As the leading advocate for housing issues, NAR has been working with Congress and the administration to protect homeowners who may be facing foreclosure as the result of predatory lending practices and as the interest rates on many sub-prime loans reset. The loan modification program introduced by President Bush and U.S. Treasury Secretary Henry Paulson is a good first step in helping deserving families keep their homes.”

NAR has been working with Congress throughout 2007 to modernize Federal Housing Administration programs that will once again make the FHA a viable mortgage product and help protect many current and future homeowners by offering a secure alternative to sub-prime loans. NAR has also been pushing Congress to reform Fannie Mae and Freddie Mac and increase their conforming loan limits, which will not only help home buyers but also will help improve liquidity in the lending industry.

“We are pleased that the administration has taken action today and are hopeful that Congress will now move quickly to approve FHA modernization and GSE reform,” Gaylord said.