By 2014 NAR President Steve Brown
Just as the winter snows melt, and spring begins to bloom, there are also signs of renewal for the Federal Housing Administration (FHA).
The White House released its fiscal 2015 budget proposal last week, and it indicates that the FHA should not need additional taxpayer funding in the coming year. This excellent news couldn’t have come at a better time. This announcement puts the FHA on the right path not only towards achieving compliance, but being positioned to cover any future losses without seeking additional funds from the federal government.
When private lenders fled the market after the 2008 financial crash, the FHA was left carrying an oversized burden. I saw this up close in my own company in Dayton, Ohio. During the depths of the Great Recession, FHA-backed loans were more than 60 percent of my affiliated mortgage company’s business. Even today, FHA-backed loans are nearly 30 percent of my book. There is no question that my business would not have survived without the FHA. In fact, the housing recovery we are now experiencing would not have happened if the FHA had not been there when times were tough.
Understandably, FHA paid a price for this commitment. It suffered financial losses and needed additional funding to cover an accounting shortfall in its emergency reserve account. For the first time in the agency’s 80-year history, the FHA drew $1.7 billion from the Treasury Department last year.
To ensure the agency does not need additional funds, the FHA made significant changes. The White House budget announcement indicates these reforms are producing positive results.
NAR continues to be a strong supporter of the FHA. We are pleased that Congress allowed the FHA to put its house in order without enacting hasty reforms that would have stalled the real estate market’s fragile recovery.
Of course, we aren’t out of the woods, yet. This is why we support needed housing finance reforms, especially the Senate’s Johnson-Crapo “FHA Solvency Act of 2013.” This bill is a strong step forward in strengthening the FHA.
But, for now, everyone across the political spectrum should welcome the news that the FHA is on the path to financial solvency. It demonstrates that the FHA’s mission of providing low cost loans to qualified borrowers—particularly low- and middle-income buyers – does not have to come at the expense of America’s taxpayers.
The new Military Relocation Professional Certification helps REALTORS® hone their knowledge and skills for working with veterans and active duty military buyers and sellers to ensure that homeownership remains affordable and accessible to them. President Gary Thomas explains more in his video below.
NAR’s 2013 Leadership Team and CEO Dale Stinton attended President Obama’s briefing on the current state of the economic recovery. REALTORS® were invited because of the critical role they played to stabilize and revitalize the real estate market. President Gary Thomas recaps in the video below.
Did you know that 45% of recent buyers used open houses to find their home? NAR encourages REALTORS® to participate in the upcoming Nationwide Open House Weekend, April 20-21, when REALTORS® will hold open houses in neighborhoods coast to coast. President Gary Thomas shares more about the Nationwide Open House Weekend in the video below, and talks about the buyers who are most likely to use open houses in their search for home.
By Gary Thomas, 2013 NAR President
REALTOR® University is one of finest examples of the innovative thinking NAR is doing to meet the needs of REALTORS® in a rapidly changing industry.
REALTOR® University fosters lifelong learning. It is the only institution of higher education focused exclusively on real estate. Entirely online, REALTOR® University is geared toward busy schedules of REALTORS®.
As REALTOR® University begins the second year offering its Master of Real Estate degree program, it is well on its way to meeting its goal of creating the highest standard of professionalism and competency in the real estate industry. Find out more about getting your degree from REALTOR University in my video below.