June is Home Ownership Month; The National Association of Realtors are working closely with the Biden administration, Congress, and our industry partners to address housing supply and affordability constraints and increase homeownership opportunities in America.
Our work on comprehensive policy proposals over the past two years is building consensus that decisive action is needed – and we’re getting results.
In early 2022, following a landmark NAR report sounding the alarm on the supply crisis, the White House submitted a historic funding request for affordable housing. Throughout the year, NAR met multiple times with White House officials and testified before Congress on housing supply and affordability constraints.
Our commitment to expanding homeownership opportunities continues in 2023:
- Vice President Kamala Harris and HUD Secretary Marcia Fudge announced in February a reduction in mortgage insurance premiums (MIPs) by 30 basis points. This followed NAR’s robust advocacy on responsibly reducing MIPs to help qualified home buyers struggling with affordability in the current environment.
- NAR held a Policy Forum on March 16 focused on the current housing market and impacts on aspiring home buyers. The event featured a keynote fireside chat with Federal Housing Finance Agency (FHFA) Director Sandra Thompson on the affordability crisis and solutions to help put the dream of homeownership within reach for more people.
- NAR President Kenny Parcell testified before the U.S. House Committee on Financial Services Subcommittee on Housing and Insurance on May 17 about the FHFA's new loan level pricing adjustments (LLPA) fee increase on borrowers with fair to good credit profiles. He stressed that the fees are unnecessary and confusing, especially when potential home buyers already face a lack of affordability and supply.
- Following significant urging from NAR, the FHFA rescinded its proposed loan level pricing adjustment (LLPA) upfront fee on borrowers with debt-to-income ratios greater than 40 percent that was slated to go into effect August 1.
In early May, thousands of REALTORS® descended on Washington, D.C., and shared with policymakers a comprehensive list of legislative priorities to improve access to homeownership, including:
- Incentivizing more owners to sell their homes by increasing the maximum amount of capital gains a homeowner can exclude on the sale of a principal residence and annually adjusting it for inflation.
- Attracting private investment for building and rehabilitating owner-occupied homes by offering tax credits that create a pathway to neighborhood stability through sustainable homeownership.
- Incentivizing the conversion of unused commercial buildings to residential and mixed-use properties.
- Creating incentives for housing provider participation in the Department of Housing and Urban Development’s (HUD) Housing Choice Voucher (HCV) program.
- Reauthorizing and increasing funding for HUD fair housing enforcement programs.
With our industry partners, NAR is pursuing bold goals to substantially narrow racial and ethnic homeownership gaps:
- NAR is a founding member of the Black Homeownership Collaborative and supports the 3by30 initiative(link is external), with the goal of adding three million net new Black homeowners by 2030. The initiative's seven-point plan includes policy solutions such as down payment assistance, alternative credit, and special purpose credit programs.
- NAR advocates with our partners for inclusive communities and greater affordable housing options – such as when NAR recently joined a coalition of housing groups in support of the Department of Housing and Urban Development’s (HUD) proposed Affirmatively Furthering Fair Housing (AFFH) rule.
Contact me start your journey to home ownership.