Builder - September 2008 - (Page 95) NAHB BRIEFS Stay Home T o address the nation’s foreclosure crisis, the housing stimulus package approved by Congress will allow the FHA to guarantee up to $300 billion in new mortgages if lenders voluntarily agree to reduce the outstanding principal and adjust BEAT NEWS FROM HOUSING’S GROUND ZERO ■ NATIONAL EDI T ED BY CL A IR E KOLT KO the terms to make them more affordable for borrowers. The Congressional Budget Office estimates that the FHA foreclosure relief plan could help as many as 400,000 struggling homeowners to stay in their homes. Positive Impact FROM I roy scott W W W.BUILDERONLINE.COM ◀ mpact fee relief is one of several approaches that local governments can take to encourage growth during the current economic downturn. Grappling with a slowdown in new development that is drying up this source of funding for infrastructure and services, many communities in the U.S. are concluding that they need to postpone impact fee increases, reduce the fees, or even temporarily halt their collection. No Better Time THE PRESIDENT The housing stimulus bill offers a good reason to get off the fence and buy. T hanks to the tireless and monumental devastating blow. The financial markets were rocked efforts of the NAHB federation, the most as they began to realize the full extent of the meltimportant housing legislation in a genera- down in subprime mortgages. Virtually overnight, tion is now the law of the land. The housing the availability of credit became a major challenge for stimulus bill provides the boost a large share of our prospective home buyour nation so desperately needs. It will help ers. For buyers who couldn’t come up with stabilize conditions in the housing market a traditional down payment or who didn’t and lead to a correction of the crisis in conhave a sterling credit history, the options fidence that has gnawed relentlessly at the were discouraging. For buyers in the U.S. economy. Just as important, it restores high-cost markets of California and elsethe strength of our badly damaged housing where, where jumbo mortgages were the finance system, setting the stage for housonly game in town, lenders were less willing’s eventual return to full health. ing to make those loans; when they were One year ago, as we were just beginavailable, a high premium was charged. ning to look forward to prospects for bet- SANDY DUNN The credit crunch was most intense in president, nahb (see page 96) ter times, the housing industry was dealt a washington, d.c. the hottest markets of sep t e m ber 2 0 08 B U I LD E R ■ 95 http://WWW.BUILDERONLINE.COM
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