NAR President on the Hill
This week, the National Association of Realtors’ (NAR’s) newest President, Moe Veissi spoke before the House Financial Services Committee of Congress asking them to “protect FHA from potentially destabilizing changes to the agency’s main insurance fund” in the light of a conversation by law makers that want to curb FHA “as a step toward reducing the federal government’s role in home ownership and also to shore up its reserves,” says NAR.
The association explains on their blog that the FHA maintains two reserves for its housing insurance program, a large reserve for 30 years against loan losses and a secondary, smaller reserve which has dropped below a statutory limit.
In his testimony, Veissi pointed to signs of recovery in housing, even in the hardest hit areas and notes that if Congress made changes to the FHA now, it could derail the recovery of housing, therefore the broader economy.
“If you diminish America’s opportunity, in any capacity, especially today when we’re just beginning to remove ourselves from one of the most horrendous housing situations the country has ever seen, then you do that at the peril of destabilizing the recovery,” he said.