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Majority of all voters value homeownership

By an overwhelming margin, American voters strongly value homeownership and would oppose efforts to weaken or eliminate the mortgage interest deduction or diminish a federal role to help qualified home buyers obtain affordable 30-year mortgages, according to a new nationwide survey gauging likely voters' attitudes towards homeownership and housing policy issues.

"The American electorate is sending a clear message that owning a home remains a cornerstone of the American Dream and preserving a federal commitment to homeownership is essential to maintain a thriving middle class and get housing and the economy back on track," said Neil Newhouse, a partner and co-founder of Public Opinion Strategies.

Conducted on Jan. 2-5 on behalf of the National Association of Home Builders by the Republican and Democratic polling firms of Public Opinion Strategies in Alexandria, Va., and Lake Research Partners in Washington, D.C., the comprehensive survey of 1,500 likely voters includes data from key political "swing areas," including National Journal political analyst Charlie Cook's swing House and Senate seats and Stuart Rothenberg's presidential swing states. The survey, which has a margin of error of ±2.5 percent, is a follow-up to a similar national poll conducted last May.

The poll shows that three out of four voters--both owners and renters--believe it is appropriate and reasonable for the federal government to provide tax incentives to promote homeownership. This sentiment cuts across regional and party lines, with 84 percent of Democrats, 71 percent of Republicans and 71 percent of Independents agreeing with this statement.

Also, two-thirds of respondents say that the federal government should help home buyers to afford a long-term or 30-year, fixed-rate mortgage.

Moreover, 73 percent of voters oppose eliminating the mortgage interest deduction. These figures held firm across the political spectrum, with 77 percent of Republicans, 71 percent of Democrats and 71 percent of Independents against doing away with the mortgage interest deduction.

Meanwhile, 68 percent would be less likely to vote for a congressional candidate who proposed to abolish the deduction, a figure that was virtually identical across all party affiliations (69 percent of Independents and 68 percent of Democrats and Republicans).

A majority of voters are also against proposals to reduce the mortgage interest deduction, eliminate the deduction for interest paid for a second home, limit the deduction for those earning more than $250,000 per year, scale back the deduction for home owners with mortgages above $500,000 and do away with the deduction for interest paid on home equity loans.

"With the 2012 election season in full swing, candidates running for the White House and Congress would be wise to heed the will of the American voters, who have expressed broad support for government policies that encourage homeownership and oppose efforts to make it more difficult to get a home loan and to tamper with the mortgage interest deduction," said Celinda Lake, president of Lake Research Partners.

Among the poll's other key findings:

96 percent of home owners are happy with their decision to own and 84 percent who are "underwater," or owe more on their mortgages than their home is worth, expressed the same sentiment.
79 percent of home owners would advise a family member or close friend just starting out to buy a home, and 69 percent of those who are underwater on their mortgage would offer the same advice.
74 percent said that despite the ups and downs in the housing market, owning a home is the best long-term investment they can make.
Homeownership and a retirement savings program are considered by voters to be their best long-term investments.
78 percent of respondents said that owning their own home is very important to them.
Nearly seven out of 10 voters who are not currently home owners (68 percent) said it was a goal of theirs to buy a home.
Job uncertainty and saving for a downpayment and closing costs are the biggest barriers to buying a home.

The survey findings are consistent with the results of other public opinion surveys. In a New York Times/CBS News poll conducted in June, 89 percent said that homeownership is an important part of the American Dream and more than 90 percent indicated that it is important for the federal government to continue the mortgage interest deduction.

According to a Pew Research Study conducted last March, 81 percent of respondents agree that buying a home is the best long-term investment a person can make and 81 percent of renters surveyed said they would like to buy a house.

"Even in a down housing market, homeownership remains a core American value, with the vast majority of citizens who do not currently own a home saying they want to buy a home," said Bob Nielsen, president of the National Association of Home Builders and a home builder from Reno, Nev. "Those running for office in November need to understand that voters will not look kindly on any candidates who seek to dismantle the nation's long-term commitment to homeownership."

Poll results can be downloaded at www.nahb.org/homeownershippoll.

Author: CRBRA Admin | On: January 16, 2012 | In: Government Affairs · Consumers | No Comments

Sponsorship opportunities to fit any budget in 2012

CRBRA has developed an updated menu of sponsorship opportunities for the new year, and encourages all members to consider supporting a 2012 association-hosted event! Benefit from generous exposure among your industry peers--and to your key consumer audiences--at CRBRA outings, member mixers, continuing education functions, and public events. With a range of opportunities to fit almost any budget, you're sure to find at least one to suit your advertising and marketing objectives!

View/download the 2012 Sponsorship Opportunities

Author: CRBRA Admin | On: December 20, 2011 | In: Members | No Comments

How to hire a professional remodeler

If you have collected photos of your dream kitchen, drafted a general budget, and talked with friends about how you wish your home was more comfortable or modern, you may be ready to hire a professional remodeler to get the job done right. The Capital Region Builders & Remodelers Association (CRBRA) has some helpful tips to guide you in finding the best remodeler for your project.

“Do your homework when hiring a professional remodeler,” recommends local builder and former CRBRA Remodelers Council chairperson Anthony Guidarelli. “A professional has training, experience, and references from satisfied clients to demonstrate their remodeling expertise.”

Check out these steps for hiring a professional remodeler:

Collect names of remodeling companies.

Start by searching CRBRA’s Directory of Professional Remodelers at Albany's Great Northeast Home Show, at the Saratoga Home & Garden Show, or on the CRBRA website. You’ll get a list of nearby remodelers to contact.

Discuss your project with a couple of remodelers.

Call a few remodelers from your list to discuss your project. Describe what you envision for the home remodel, styles you like, your estimated budget, and other ideas for the remodeling work. Ask the remodelers if they can provide background information on their expertise. They may have a website or brochure they can share that describes their experience and accomplishments.

Ask if the remodeler has general liability insurance.

Be sure to ask some important questions about the remodeler’s business that will help ensure you hire the best professional. Does the remodeler have a license, if required in your state? Do they have general liability insurance in case of an accident on the job? Do they guarantee their work? How do they handle any problems that may arise on the project? Having these answers in advance will prevent future problems and nail down the best professional remodeler for the job.

Check the references and background of the remodeler.

After you start speaking with remodelers and find one or two who match your project’s needs, be sure to conduct some background research by checking with the Better Business Bureau, talking to their references, and asking if they are a member of a trade association such as CRBRA. Remodelers with these qualities tend to be more reliable, better educated, and more likely to stay on top of construction and design trends.

Don’t fall for the lowest bidder.

Many people may be lured by the lowest price for their remodeling project, thinking that they have found a great deal. But beware of these alluring low prices. These bids may be more costly in the end if the contractor is cutting corners, not taking into account certain costs, or is inexperienced. Professional remodelers have stories about coming into homes to fix remodels from unscrupulous contractors who did shoddy work or failed to complete the job. Often times, the lowest price may not ultimately provide the best value for your home remodel. Make the smartest investment in your home by hiring a professional remodeler. They’ll help you stay on budget, solve remodeling challenges, and provide a higher-quality service.

Related articles:

Top Ways to Add Value to Your Home
Why Hire a Certified Lead-Safe Renovator?
All About Aging in Place

For more tips on planning a home remodel or hiring a professional remodeler, visit our special remodeling section or contact Capital Region Builders & Remodelers Association.

Author: CRBRA Admin | On: November 16, 2011 | In: Consumers | No Comments

2012 Parade of Homes planned for June

The Capital District Builders & Remodelers Association is pleased to announce that plans for the new spring Parade of Homes are well underway!

Long an autumn staple, the CRBRA Parade of Homes will be reborn in 2012 as an exciting new spring event, to be held June 2, 3, 9, and 10, 2012. This is an ideal season to showcase homes at their "blooming best", and will be a unique event for the public to enjoy at a time when events of this sort are lacking. Builders can take advantage of this timing, when prospective buyers have shaken the winter blahs, finished their spring cleaning, and are ready to move on to the promise of a fresh new home!

Builders who have already committed to participate include:

...with more to be announced in early 2012.

Calling all area builders! Please consider being a part of the 2012 Parade of Homes.

Click here to view details & download registration form

Author: CRBRA Admin | On: November 16, 2011 | In: Events · Members | No Comments

CRBRA contingent meets with Congressman Tonko

Congressman Tonko visit On October 18th, a diverse group of CRBRA members--representing association leadership, and local home building, construction, and mortgage interests--met with Congressman Paul D. Tonko (D-NY21) at his Albany office, to discuss their views on H.R. 1755, The Home Construction Lending Regulatory Improvement Act--which focuses on restrictions to acquisition, development, and construction (AD&C) loans to builders--and on H. Res. 25, about the continuation of the mortgage interest deduction.

Mike Curtis, a CRBRA director and Vice President of Sales at SEFCU Mortgage Services, compiled this summary explanation of the key issues of concern, especially as pertains to housing industry banking:

Risk Retention (Dodd-Frank)

Risk retention is intended to align the interests of borrowers, lenders, and investors in the long-term performance of loans. This "skin-in-the-game" requirement, however, is not a cost-free policy option. This requirement will increase the cost of loans funded through securitization, without doubt. Congress recognized this fact and asked that regulators define a "Qualified Residential Mortgage" (QRM), with loans fitting this description exempt from risk retention. FHA loans are exempt, as is any loan being sold to Fannie Mae & Freddie Mac while they're in conservertorship. All other loans will require a 20% downpayment (for purchases) or a minimum of 25% equity in the property (refinances). In addition to this, qualifying ratios cannot exceed 28/36 and there can have been zero delinquencies in the past two years. This appears to fly in the face of everything the administration is trying to accomplish to shrink Fannie & Freddie's role, and to stabalize the housing market. I might suggest the definition sound something like "fully documented and fully amortizing". This would remove the riskiest products from the mortgage market and at the same time allow for a robust private-label securitization market to return, thus shrinking Fannie & Freddie's very important role.

Mortgage Interest Deduction

I can't think of a larger tax increase on working families, many of whom relied on this savings when determining if they could afford the mortgage in the first place.

Loan Officer Licensing (SAFE Act)

State regulated lenders are required to have licensed Loan Officers. Federally regulated lenders are only required to have registered Loan Officers. Licensing requires 20 hours of education (plus 11 hours continuing education every year), fingerprints, background checks, personal credit checks, and passing a national exam as well as a state-specific exam. If a Loan Officer fails any of these requirements, including acceptable personal credit, their license will be denied and they must cease originating immediately. However, that same Loan Officer can go back to work for Bank of America the next day! Further, federal charters can recruit from us and have their Loan Officers begin immediately. We have to have someone complete everything mentioned above, submit to the NYS Banking Dept for approval, for which we've been told to expect 120-day turnaround before that Loan Officer begins with us.

Learn more:

Housing Finance Reform
Housing Production Credit Crisis
Tax Reform
The Mortgage Interest Deduction: Background & Statistics
H.R. 1755, the Home Construction Lending Regulatory Improvement Act
H.R. 1755 legislative alert

Author: CRBRA Admin | On: October 24, 2011 | In: Government Affairs · Politics · Members | No Comments

Presidential hopefuls must address housing issues

WASHINGTON, Oct. 20--As noted by the Wall Street Journal, MSNBC and other media outlets, the Republican presidential candidates let a great opportunity slip away during Tuesday night's presidential debate to explain how they would address the nation's housing problems in order to get the housing market and economy back on track, according to the National Association of Home Builders (NAHB).

"There can be no economic recovery without a housing recovery, yet the silence on housing was deafening during the debate," said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. "It is particularly ironic that with the debate setting in Las Vegas, the epicenter of the foreclosure crisis, the candidates chose to duck this topic and other critical housing issues."

Furthermore, Nielsen noted that the absence of specific policy proposals to spur the housing market and promote homeownership is not just limited to the GOP presidential contenders.

"President Obama needs to take an affirmative position on homeownership as well," he said. "The failure of the Administration to put forth pro-housing policies is impeding the economic recovery and hurting job growth and consumer confidence."

In normal economic times, housing accounts for more than 17 percent of the nation's economic output. Building 100 single-family homes generates 305 full-time jobs, $23.1 million in wage and business income and $8.9 million in taxes and revenue for state, local and federal governments.

Though more than 1.4 million residential construction workers have been idled since April 2006, several markets are showing signs of improvement, but policy headwinds are preventing workers from returning to their jobs, keeping home buyers on the sidelines and harming the economic recovery.

Credit conditions remain extremely tight for home buyers and home builders alike, preventing creditworthy borrowers from obtaining affordable home loans and small home building firms from getting construction loans to build even pre-sold homes and create jobs in their communities.

Policymakers are also considering mandating 20 percent downpayments for home buyers and abolishing Fannie Mae and Freddie Mac, which would make it even more difficult to obtain an affordable 30-year home loan, the major housing finance tool for most Americans.

Meanwhile, some leaders in Washington are calling for eliminating or drastically reducing the mortgage interest deduction, which would act as a tax on millions of middle-class home owners, place more downward pressure on home values, and further enflame the foreclosure mess.

"Instead of arguing who was to blame for the downturn, all the 2012 presidential hopefuls need to be addressing these housing issues head-on," said Nielsen. "Housing and homeownership are critical to a strong and prosperous nation. If any of these anti-housing policies are codified, it could fundamentally alter the ability of the nation to sustain a middle class that has contributed to a century of economic progress."

Author: CRBRA Admin | On: October 24, 2011 | In: Government Affairs · Politics | No Comments

Senate moves to reinstate higher conforming loan limits

In an important victory for NAHB, the Senate on Oct. 20 approved an amendment to an appropriations bill offered by Sens. Bob Menendez (D-N.J.) and Johnny Isakson (R-Ga.) to reinstate for another two years the higher loan limits for Fannie Mae, Freddie Mac and the Federal Housing Administration that expired on September 30th.

The vote was 60 to 38, just meeting the necessary 60-vote threshold required for passage under Senate rules.

The appropriations bill includes spending for the Department of Housing and Urban Development and other federal agencies.

NAHB has been aggressively lobbying for the Menendez-Isakson amendment directly on Capitol Hill and through its grassroots membership.

A “key vote” letter was sent to members of the Senate on October 19th, urging them to support the amendment to spending bill H.R. 2112 to temporarily restore the higher conforming loan limits.

The letter noted that the current lower loan limits will “further restrict overall mortgage liquidity in the marketplace and place further downward pressure on home prices. Restoring the higher loan limits will provide home owners and home buyers with safe and affordable financing while providing a much-needed boost to housing markets all around the country.”

To build support for the amendment, NAHB also sent out a BuilderLink Alert notifying association members that the Senate might consider a measure to reinstate the higher conforming loan limits. Members were urged to contact their senators and call on them to support the Menendez-Isakson amendment.

Effective on October 1st, the loan limits reverted to the lower levels for high-cost areas established under the Housing and Economic Recovery Act of 2008.

The national ceiling for mortgages securitized by Fannie Mae and Freddie Mac or insured by the FHA dropped from $729,750 to $625,500 and the formula for establishing area loan limits became more restrictive, producing decreases for areas in addition to those currently bound by the national ceiling.

A recent NAHB study found that allowing the limits to revert to 2008 levels would make millions of home purchases ineligible for Fannie Mae, Freddie Mac and FHA funding and require them to be financed with higher mortgages interest rates, fees, and downpayments, and more stringent credit standards.

After passage of the Menendez-Isakson amendment, NAHB Chairman Bob Nielsen issued a statement commending the Senate action and noting that “the 60-to-38 vote demonstrates bipartisan support for pro-housing policies that will help our industry to create jobs and spur economic growth.”

He also called on Congress to move soon to ensure that this measure is enacted into law.

“Otherwise,” said Nielsen, “the current drop in mortgage loan limits will reduce housing demand and place downward pressure on home prices in major markets. This will exacerbate the current housing downturn, trigger more foreclosures, impede job growth and endanger the fragile economic recovery.”

As the appropriations process moves forward, NAHB will turn its focus to preserving the loan limits extension, among other priorities, in the HUD appropriations bill.

Author: CRBRA Admin | On: October 24, 2011 | In: Government Affairs · Politics · Members | No Comments

Housing: A time to buy

A recent report by Dr. David Kelly, CFA, and David M. Lebovitz of J.P. Morgan Funds focuses on the current housing economy, and on the opportunities that exist for consumers.

With the debt crisis in Europe still unresolved and economic growth in the U.S. sluggish, the capital markets continue to exhibit elevated volatility. However, this does not mean that no investment opportunities exist. Although the U.S. housing market remains extremely depressed, we believe that given current valuations and demographic dynamics, now may be the time to consider an investment in housing.

Download the complete Market Insights report

Author: CRBRA Admin | On: October 24, 2011 | In: Consumers | No Comments

Housing shortage likely if AD&C lending crisis continues

<<< Back: Housing production credit crisis will have harsh consequences

Setting the Record Straight

As the debate over tax reform and the regulatory structure of the housing finance system intensifies, misconceptions about housing and finance are proliferating. Following is the truth about some of the most widespread inaccuracies.

Misconception: Only the wealthy benefit from the mortgage interest deduction.

This pervasive fiction is a commonly cited reason for justifying elimination of the mortgage interest deduction.
Income tax deductions for mortgage interest and real estate taxes primarily benefit middle-class taxpayers with incomes between $50,000 and $200,000. While some groups will argue the contrary, consider this: taxpayers earning less than $200,000 pay about 43 percent of all income taxes. However, they receive 68 percent of the total benefit of the mortgage interest deduction and 77 percent of the total benefit of the real estate tax deduction. Moreover, larger benefits go to larger households and families, such as those with children.

Misconception: In the wake of the recession and housing market downturn, Americans have become disenchanted with homeownership and it is no longer a part of the American Dream.

Not so, according to recent polls by NAHB, the Pew Research Center and the New York Times/CBS News. In a Pew Research Center survey conducted in March 2011, 81 percent agreed that owning a home is the best long-term investment a person can make. And in a national poll of voters conducted for NAHB in May 2011, 80 percent of home owners said they would advise a family member or a close friend just starting out to buy a home in order to build long-term assets. In a New York Times/CBS News poll in June 2011, 89 percent said that homeownership is an important part of the American dream.

Misconception: Housing is not as important to the American economy as many other industries.

Actually, the downturn in the housing market is one of the largest contributors to the nation’s high unemployment rate. Total employment in residential construction (building and trade contractors for single-family, multifamily, land development and remodeling) is down more than 1.4 million jobs from the peak employment rate of 3.45 million in April 2006. The housing downturn has also contributed to the loss of more than one million other jobs--jobs in manufacturing, transportation, retail sales, engineering and other industries that provide goods and services to the housing industry. Building 100 new single-family homes generates more than 300 jobs.

Misconception: Homeownership advocates say everyone should own a home.

Homeownership isn’t for everyone, but everyone should be able to choose the home they want, whether they rent or buy. And government policies, such as the proposed Qualified Residential Mortgage standard, should not limit homeownership opportunities unnecessarily.

The actions policymakers take today will determine in large part where our children live tomorrow. As the debate over housing policy unfolds, it is crucial to ensure that homeownership remains attainable, that people can choose the type of housing they prefer, and that safe, decent and affordable housing remains an enduring national priority. Any other legacy is unthinkable.

Author: CRBRA Admin | On: October 04, 2011 | In: Government Affairs · Politics · Consumers | No Comments

Housing production credit crisis will have harsh consequences

<<< Back: Federal government must support the housing finance system

With inventories of new homes nearly depleted in many markets, builders should be gearing up to meet demand, create new jobs and keep the economic expansion moving forward.

Unfortunately, the credit pendulum has swung so far out of balance that many lenders are refusing to make loans for potentially profitable new housing projects. Under pressure from federal banking regulators, they are even calling in performing loans.

Bank lending for residential construction (including acquisition and development of land and construction costs) dropped 69 percent between the end of 2007 and the end of 2010, according to a preliminary NAHB analysis of data from banks regulated by the Federal Deposit Insurance Corporation.

During that time, outstanding acquisition, development and construction (AD&C) lending for one- to four-unit housing development purposes dropped from $203 billion to $63 billion, a much steeper decline than the reduction in the total value of residential construction for which building permits were issued.

Home builders cannot keep their doors open and create jobs in their communities if they cannot get credit to build even pre-sold homes. And builders in the midst of finishing sound projects cannot pay subcontractors and other materials and service providers if lenders will not grant routine loan extensions or if banks require payment-in-full before homes can be finished and delivered.

Unless lenders start making loans to builders for acquisition and development of land and construction of new homes (AD&C loans), the nation will face a severe housing shortage in the near future.

While a large number of foreclosures and distressed properties have flooded the market in recent years, the inventory of homes for sale varies widely from one location to another, and the greatest amount of foreclosure activity has been concentrated in a few specific markets.

Meanwhile, the nationwide inventory of completed newly built homes is extremely low due to the limited amount of new construction that has taken place during the economic recession.

Demand for new homes is driven by household formations, and according to projections by the Joint Center for Housing Studies of Harvard University, demand for new homes between 2010 and 2019 is likely to range from 1.6 million to 1.9 million annually.

Current housing production is falling far short of that need. Builders broke ground on 587,000 new homes in 2010, according to the Census Bureau. And as of July 2011, total private housing starts were 604,000 at an annualized rate, with both single-family and multifamily starts falling well below projected demand.

Moreover, NAHB estimates that approximately 2 million household formations have been delayed as a result of recent economic conditions, and these potential households constitute a “shadow demand” for the nation's housing markets. As the economic picture improves, this demand will also be unlocked, helping to reduce housing vacancy rates and increase the need for new home building.

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