Inventory be damned, lets build more homes

[30ashopper]

H.R. 5409, the Residential Construction Lending Act, would create a new residential construction loan guarantee program within the Department of Treasury to provide loans to builders with viable construction projects. Designed to unfreeze credit for small home building firms, the measure would expand the flow of credit to residential builders on competitive terms.

Under intense pressure from their bank examiners to reduce their exposure to development and construction loans to builders and curtail their outstanding portfolios of real estate loans, many lenders are refusing to make loans for viable new housing projects and cutting off the funding for performing loans, or calling them. This is causing unnecessary foreclosures and losses on these loans. Performing loans are also being reappraised, reducing the value of the collateral and forcing borrowers to come up with large amounts of cash to keep their loans current.

NAHB: Legislation Addresses Housing Production Credit Crisis

"We applaud these lawmakers for taking the lead to address the housing production credit crisis that is jeopardizing the housing and economic recovery now under way..." said NAHB Chairman Bob Jones, a home builder from Bloomfield Hills, Mich.



We should pass an amendment to the constitution requiRng all lawmakers pass econ 101 with a c-grade or higher before being allowed to hold office.

 

[Ari Silverstein]

If we put the NAHB and the National Association of Realtors leadership in the same room and forced them to procreate, we would have a massive infusion into the populous of three eyed, flipper armed retarded cretins spawned from these kissing cousins..

The unsolvable problem is that the Central Bank and FedGovs housing policy were supported on two false stilts...which are both failing: prosperity (jobs) will grow indefinetley, and housing values will rise forever.

Real incomes and house values are both in elemental declines, yet the Federal government is insisting on issuing hundreds of billions of dollars in new "options" (simulacra of ownership) in the vain, absurd hope that issuing enough speculative bets will actually re-inflate the housing bubble?

Now this garbage legislation?

Btw, new construction patches jobs temporarily for a limited number in the home building community but no new wealth is created in permanence. MOF, it's more of the same ruse...that is home ownership for the heavily leveraged. It's not equity based onwnership, it is the renting of money with the gamble that equity will majickally arise out of nothingness. Well, duh, didn't happen, ain't happening, ain't ever happening, greedy middle and upper class Buyers bought into the ruse like lemmings seek cliffs.

 

[scooterbug44]

Definitely dumb - I could see setting certain standards that would allow individuals to get loans to build themselves a primary home, but I don't think a government program to build spec homes is good.

 

[TNJed]

NAHB: Legislation Addresses Housing Production Credit Crisis

"We applaud these lawmakers for taking the lead to address the housing production credit crisis that is jeopardizing the housing and economic recovery now under way..." said NAHB Chairman Bob Jones, a home builder from Bloomfield Hills, Mich.



We should pass an amendment to the constitution requiRng all lawmakers pass econ 101 with a c-grade or higher before being allowed to hold office.

I blame the stock market, full stop. Having a fiduciary duty to provide growth to shareholders gives us growth for growths sake. This leads to pushing disposable products, creative accounting and ultimately 30 million barrels of oil in the Gulf. We have all played a part in the momentum of the machine. ;-)