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NAR sent two letters to the House of Representatives this week urging against cosponsoring Rep. Joe Hensarling’s (R-TX) housing finance reform bill, H.R. 2767, the Protecting American Taxpayers and Homeowners (PATH) Act. While NAR supports housing finance reform, the letters, one solely from NAR and one from a coalition of industry groups, point out the major flaws in the PATH Act which could actually hinder American families’ access to quality homeownership and rental options, and hurt job growth.
The main concerns about the PATH Act center on its lack of an explicit federal guarantee and its dramatic restructuring of FHA and its proposed targeting of FHA’s mission. A federal guarantee is critical to ensuring stability in housing finance markets and the continued availability of 30-year fixed rate mortgages for qualified buyers. FHA has already begun and continues to make changes to address the problems it has experienced, and the type of restructuring proposed in the act will not help it; what FHA needs is the authority to undertake reforms needed to strengthen its financial footing. NAR will continue to advocate for housing finance reform that promotes responsible, sustainable home ownership and does not endanger the future of this critical economic sector.