Homebuilders, industry members testify in favor of looser lending standards
Posted on Monday, April 20, 2015 at 8:06:11 AM
Residential financing lending standards have been a point of contention for a while now, especially given the recent recession and housing bubble.
While loose standards were a primary reason for problems in the housing market, access to residential financing is incredibly important today. The economy is stronger and more homebuyers are itching for home loans. However, with tighter standards, some creditworthy borrowers are left on the sidelines.
This is why a number of industry members have recently testified before the U.S. Senate Banking Committee to discuss mortgage credit. The National Association of Home Builders spoke in favor of the Mortgage Choice Act, which would improve access to residential financing for many families.
"By responsibly modifying the definition of points and fees for a home loan to be considered a qualified mortgage and ensuring that consumers can choose the lender and title provider best suited to their needs, this bill would allow more low- and middle-income families the opportunity to finance a home purchase," testified Tom Woods, chairman of the NAHB.
Another industry member in front of the Senate was J. David Motley, a member of the Mortgage Bankers Association's Board of Governors. Motley testified against new regulatory demands on residential financing, which he argued are hampering credit affordability and availability.