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Let Rural Housing Service Provide Direct Endorsement Authority to Lenders, Say Realtors

WASHINGTON – May 19, 2015 – (RealEstateRama) — The following is a statement by National Association of Realtors® President Chris Polychron in support of the Rural Housing Service and today’s testimony from RHS Administrator Tony Hernandez before the U.S. House Financial Services Subcommittee on Housing and Insurance:

“Today, every Rural Housing Service loan must be approved by RHS staff. In recent years, RHS staffing has been dramatically reduced, and borrowers have experienced significant delays in loan approval.

“Both the Veterans Affairs loan guaranty and the Federal Housing Administration mortgage insurance program utilize private lenders for direct endorsement. Providing RHS with the authority to approve direct endorsed lenders would create great efficiencies for the service and homebuyers.

“RHS, in turn, would have additional staff time to focus on a strengthened lender monitoring process and risk management. NAR strongly urges Congress to provide RHS with direct endorsement authority to ease burdens on the agency and accelerate loan processing for borrowers.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1 million members involved in all aspects of the residential and commercial real estate industries.