WASHINGTON, D.C. – March 29, 2011 – (RealEstateRama) — A new rule unveiled today by the Federal Deposit Insurance Commission would ratchet up mortgage lending restrictions to such an extent that they would disrupt the housing market and undermine an already-fragile recovery.
Wednesday, March 30, 2011
2:00 p.m. EDT
- Barry Rutenberg, First Vice Chairman, National Association of Home Builders
- Lew Ranieri, Financier
- Mike Calhoun, President, Center for Responsible Lending
- Barry Zigas, Director of Housing Policy, Consumer Federation of America
The National Association of Home Builders and other industry and consumer groups warned federal regulators in January against excessive down payment requirements and other severe lending restrictions for Qualified Residential Mortgages (QRMs) under forthcoming Dodd-Frank Act risk retention rules. In an already tight credit market, the anticipated QRM rules would make mortgages less available and more expensive for millions of creditworthy first-time buyers, repeat buyers and refinancers, pricing many out of the market for new and existing homes—including foreclosed homes—and remodeling.
In reaction to the FDIC proposal, NAHB will host a media teleconference where NAHB First Vice Chairman Barry Rutenberg will discuss the negative economic impact that overly restrictive lending rules would have on the housing market and the larger economic recovery. Next, financier Lew Ranieri will explain how this rule will adversely affect the secondary mortgage market and limit access to credit. Center for Responsible Lending President Mike Calhoun will present statistical analysis of the effects of such tightening on both the consumer and U.S. economy. And Consumer Federation of America’s Director of Housing Policy Barry Zigas will call on regulators to restore a strong and stable credit market without saddling America’s working families with unnecessarily high costs and closing the door on homeownership for many.
Members of the media will be given the opportunity to ask questions at the conclusion of the call.
To participate in the call, please dial 1-800-860-2442 (toll-free) at 2:00pm ET and ask for the “NAHB Mortgage Reform Teleconference.”
If you are unable to participate in the teleconference, a full replay of the call will be available. To access the replay, please dial 1-877-344-7529 and enter 449809 when prompted for a passcode.