NAR backs move to extend tax credit

NAR backs move to extend tax credit

WASHINGTON – June 11, 2009 – The Housing Working Group of Business Roundtable, an association of leading U.S. corporation CEOs, yesterday announced bipartisan proposals to help return stability and growth to the U.S. housing market. “We recognize the earlier efforts made by the Administration and Congress, but strongly recommend taking additional steps to jumpstart the lagging housing market in order to stimulate a broader economic recovery,” says Richard A. Smith, president and CEO of Realogy Corporation and chair of Business Roundtable’s Housing Working Group. “If the housing market is not corrected or stabilized, the tide of the recession is not likely to reverse in the near term, and the slide in the economy overall will continue.” The recommendations include expanding homebuyer tax credit incentives. Among other recommendations, the CEOs also strongly encourage the Obama Administration to keep 30-year fixed mortgage interest rates at historically low levels for the next 12 months, and to undertake a comprehensive review of existing foreclosure mitigation and loan-modification programs. “NAR (The National Association of Realtors®) and our 1.2 million members applaud the Business Roundtable for its sound policy recommendations put forth to reinvigorate our nation’s housing market,” says NAR President Charles McMillan. “The proposal is consistent with the recommendations NAR has advocated and reflects the critical need to continue efforts to bring stability to the housing market.”The specific Business Roundtable recommendations include: 1. Keep mortgage interest rates at historically low levels for at least one year.2. Expand the current first-time homebuyer tax credit incentive from the lesser of 10 percent of the purchase price of the home or $8,000, to a higher limit of 10 percent or $15,000 for all homebuyers. Remove the current income restrictions and include all primary residence purchases for one full year.3. Conduct a thorough review of current foreclosure mitigation and loan-modification programs in light of rising loan-modification re-default rates.4. Make permanent the current temporary conforming loan limits.5. Continue to review and strengthen government efforts already underway to review and refine mortgage lending practices. For more information about the Housing Working Group and Business Roundtable, visit its website at: http://www.businessroundtable.org© 2009 FLORIDA ASSOCIATION OF REALTORS®