Minority Real Estate Professionals Express Cautious Optimism on Passage of Housing Stimulus Package

RISMEDIA, July 29, 2008-Speaking on behalf of the National Association of Real Estate Brokers (NAREB), one of the country’s oldest minority trade associations, President Maria Kong expressed “cautious optimism” on the passage of the housing stimulus package:

“NAREB applauds the Congressional leadership who worked diligently to pass the housing recovery measure in the House and Senate. Now, we urge President Bush to sign the bill into law, without hesitation.

“Our members view the housing relief legislation as a mixed blessing. On the one hand, we are hopeful that African-American homeowners can stay afloat long enough to recast their mortgage loans. We fear, however, that very few of the two million American homeowners facing foreclosure are creditworthy enough at this juncture to qualify for refinancing.

“The fallout from the subprime mortgage loan debacle has yet to fully materialize. If the projections are anywhere near accurate, one in five African American homeowners will lose their homes to foreclosure; the outrageous result of the disproportionate steering of minority home buyers to onerous subprime mortgage loans. Not only are these loans crippling African Americans and other targeted minority homeowners, but also are primarily responsible for long-term destabilization of once desirable urban neighborhoods.

“We remain saddened that the stimulus package did not become law quickly enough to save approximately two million American home foreclosures. While nothing restores their loss, we are encouraged that the Federal Housing Authority (FHA) is strengthened and positioned to play a more pivotal role in reversing the housing crisis.

“Additionally, we support the measure to raise the ceiling up to 115 percent of the local area median home price on mortgage loans eligible for re-purchase by Fannie Mae and Freddie Mac, Capping home prices of $625,000, nationwide, also works to generate interest among skittish home buyers.

“NAREB is poised to work with the public, private and nonprofit sectors to restore confidence in the marketplace and fairness in the mortgage lending market for all homebuyers. Let us all stand together to ensure that homeownership remains a realizable option for African Americans and other minorities.”

NAREB’s 61st Annual Convention opens on August 8th in Memphis, TN with plans to issue a “Call to Action” with the result being a unified approach to address the debilitating and on-going affects of the housing crisis among African Americans. A session outlining the current State of Housing in Black America precedes the Call to Action.

For more information, visit http://www.nareb.com.