The National Association of Home Builders (NAHB) recently lauded President Obama's latest housing plan, which would make it easier for homeowners across the nation to refinance mortgages even if they are underwater on their loans.
"The nation's home builders commend President Obama for highlighting the vital role that housing plays in the U.S. economy, for recognizing the high value that Americans place on homeownership and for focusing on how to address the nation's housing problems," said Bob Nielsen, chairman of the NAHB. "Clearly, more decisive actions are needed to increase refinancing opportunities, to reduce the inventory of foreclosed homes and to prevent additional homes from going into foreclosure."
Obama's plan would give borrowers who are current on their payments the opportunity for about $3,000 in savings if they refinance. The president also acknowledged that his administration's past efforts to fix the housing crisis fell short of expectations.
The new plan faces opposition from Republicans. "None of these programs have worked … I don't know why anyone would think that this next idea is going to work," House Speaker John Boehner (R-Ohio) told the Wall Street Journal. And Mitt Romney, the frontrunner for the Republican presidential bid, has suggested the housing market be left to "hit the bottom."
The NAHB, meanwhile, hopes the president will go further in helping the home building industry.
"To create jobs and further stabilize housing and the economy, NAHB is also urging policymakers to end excessively tight lending standards that are preventing qualified borrowers from obtaining a mortgage and home builders from getting construction loans to build viable projects in communities that want and need them," Nielsen said.
