Proposal for Housing Market Stimulus via a mortgage "Credit Moratorium"...
Dave Van Waldick, a mortgage and real estate industry veteran, has proposed a mortgage credit moratorium platform that ensures a sorely needed short term stimulus to the housing market. His proposal has been submitted to a local Congressman, as well as mortgage and housing industry participants and advocates. His proposal below, summarizes his belief that as many as 2-3 million potential home buyers could re-enter the housing market in a responsible manner within 6-24 months without having to wait 3-5 years as has been suggested by HUD and FNMA in recent undwerwriting changes.
"As a 25 year participant of the mortgage industry, and 18 year owner of a residential brokerage, Western Realty Finance, I have provided thousands of mortgage loans to home owners over the past 18 years. As such I am acutely familiar with the virtual destruction of much of the housing and mortgage markets. We have watched intently for the past 3 years as housing sales have collapsed, and contributed significantly to the broader economic demise of the national economy and the world wide recession.
We have watched closely the news coverage as both industry and national political figures wrestle with the problems and propose solutions. Arguably, no one really knows how to fix this in a clear and meaningful manner. Fiscal and monetary stimulus is the traditional macro-economic tools employed by the Federal Reserve, the Treasury, and Congress to manage the economic cycles. This one has us all largely confused as it is so closely tied to consumer behavior that has been directly impacted by rapidly declining home equity and the multi trillion dollar loss of real wealth.
The proposal has the potential of quickly and significantly increasing housing sales by as many as two million units or more, and can benefit industry participants without being mired in mortgage industry complexity. It is relatively straight forward and has an immediate cause and effect to stimulus home buying. It is clear, simple, and relatively low cost.
I propose a “Credit Moratorium” for would be owners who’s credit and home buying ability has been impaired by mortgage late payments and/or short sale and foreclosure actions during the period between 2007 and 2009. Essentially, set back the credit clock for homeowners who have experienced mortgage delinquencies, and/or foreclosures due to market circumstances largely beyond their ultimate control. These proven buyers can then more readily become homeowners again, as long as their overall consumer credit is current, and they have the verifiable income and assets to buy a home that fits their budget. This has a huge beneficial impact on millions of homeowners who are locked out of the market for 3-5 years due to unfair current credit guidelines regarding mortgage foreclosures and short sales in this unprecedented time. It has a host of benefits, and is easily and inexpensively implemented by federal mandate. The national credit repositories would, within approved guidelines, restore mortgage late reporting to zero or no more than a minimal 30 days late, between 2007-2009.
I believe this to be worthy of federal level consideration and would certainly be a strong beneficial position and solution for the housing sector and all it’s the interested constituents and parties. This may be one of the most powerful consumer demand side tools available, at a minimal cost and could be quickly and clearly implemented. "
David Van Waldick,
President
Western Real Finance
760.599.1261
email: Dave@wrfco.com
No comments:
Post a Comment