Dave Liniger, co-founder of RE/MAX International, recently requested, via his blog on RE/MAX Mainstreet, ideas on how to stimulate the market. My reply to his question, which was published on his blog, follows:
Part of the issue here is everyone seems to think they have the best idea to get us out of this problem. If every RE/MAX Associate pushed his or her own idea, nothing would get done. If every REALTOR pushed his or her own idea, nothing would get done. NAR has had a plan in place since mid-October and, regardless of whether we think it’s perfect or can be improved, we need to get behind it. NAR has struggled to get anything through the short lame duck session of Congress. We need to act so Congress acts quickly when they reconvene in January. Here’s their plan:
1. Remove the requirement in the current law that first-time homebuyers repay the $7,500 tax credit, and expand the tax credit to apply not only to first-time buyers, but also to all buyers of a primary residence.
2. Revise the FHA, Fannie Mae and Freddie Mac 2008 stimulus loan limit increases to make them permanent. The Economic Stabilization Act, enacted in February, made loan limit increases temporary, and subsequent legislation reduced the loan limits and made them permanent. This has broad implication for homebuyers in high cost areas.
3. Urge the government to use a portion of the allotted $700 billion that was provided to purchase mortgage-backed securities from banks to provide price stabilization for housing. The Treasury department should be required to use the newly enacted Troubled Assets Relief Program to push banks to:
-Extend credit down to Main Street, making credit more available to consumers and small businesses;
-Expedite the process for short sales;
-Expedite the resolution of banks’ real estate owned (REOs) properties.
4. Make permanent the prohibition against banks entering real estate brokerage and management, further protecting consumers and the economy.
Contact your members of Congress today via: http://takeaction.realtoractioncenter.com/campaign/4pointplan?rk=A1LyIoSqTI_IW
