While supporting housing finance system reform, the National Association of Home Builders (NAHB) reiterates that reform must include 30-year, fixed-rate mortgages as well as mortgage financing for multifamily housing. “There are serious doubts on whether a private housing finance system would be capable of supporting this type of product without some government backing,” said Judson. “At a minimum, the cost and terms of 30-year mortgages would be significantly less favorable under a totally private system and many fewer families would be eligible for home loans.” Testifying before the Senate Banking Committee, Judson noted the importance of programs that target certain sectors of the home buying public, like the Federal Housing Administration (FHA), the Veteran’s Administration, and the Dept. of Agriculture’s Rural Housing Service. As MHProNews has learned, he said, “The Federal Housing Administration’s single-family mortgage programs are a unique and vital component of the housing finance system, providing access to homeownership for underserved communities, primarily first-time home buyers, minorities and those with limited down payment capabilities.” He also noted the difficulty home builders are having in accessing production credit from traditional funding sources.
