Realtors Ask Mortgage Industry to Ease Underwriting Policies

The National Association ofrnRealtors® (NAR) used the forum of its 2010 Conference in New Orleans to urgernthe lending industry to make things easier to qualified buyers to become homeowners.  NAR appealed primarily to thernpublic sector, i.e. FHA, Fannie Mae, and Freddie Mac, which it said account forrnmore than 90 percent of the mortgage market, saying that lenders refuse to makernloans without assurance that FHA will insure them or the GSEs will buy them.  </p

Vicki Cox Golder, NAR President,rnsaid that the government agencies are impairing their own mission to providernmortgage liquidity to home buyers with unnecessarily restrictive limits on the availabilityrnof credit.  “These policies arerndelaying recovery both of the housing market and the larger economy.”</p

“Under current practices, many would-be home buyers who could responsibly,rnaffordably become home owners are unable to do so,” said Golder. “NAR wants tornensure that anyone who is able and willing to assume the responsibilities ofrnowning a home should have the opportunity to pursue that dream.”</p

NAR also called on FICO Corp. and private lenders to amend certain rules onrnthe utilization of credit, how negative credit scores will affect future homernpurchases, and to change how they report and treat loan modification andrnpayment plans. The Association also expressed its intentions to work with allrnpublic and private parties to encourage them to assess their credit policies onrnan ongoing basis.  </p

NAR said it will also develop educational materials for its members andrnconsumers about credit issues, including the importance of good credit, lenderrncredit policies, and how to find a fair and affordable mortgage.

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