The National Association of Homebuilders (NAHB) has asked Congress to take tangible steps to improve access to credit for homebuilders. "It is clear that congressional action is needed to help open the flow of credit to home builders," NAHB Chairman Bob Nielsen told members of the House Financial Services Subcommittee on Financial Institutions and Consumer Credit on Wednesday.
Homebuilders are facing a slew of obstacles to increasing production, including the Dodd-Frank financial services law that took effect in July 2010 and increased pressure from lenders, Nielsen said. To overcome these difficulties, the NAHB has presented banking regulators with specific instances of credit restrictions and requested specific changes to current regulatory guidance. The NAHB will also soon offer Congress a legislative blueprint for fixing specific instances of regulatory excess while helping to ensure adequate credit availability to home builders.
"Without such action," Nielse added, "there can be no housing recovery, which has major implications for our nation's ability to recover from the current economic downturn."
