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The holidays are looking a little brighter for thousands of Americans who will enjoy greater access to more housing opportunities under several pieces of legislation backed by the National Association of Realtors and recently signed into law by President Bush. The association's president, Walt McDonald, on behalf of Realtors and consumers across the country, attended the signing ceremony on Dec. 16 for the American Dream Downpayment Act, a major victory that will help more families achieve the American dream of homeownership.
The legislation will provide an average of $5,000 in grants to approximately 80,000 lower-income families over the next two years to help them pay down payment and closing costs on their first homes. Grants will be made to state and local governments through the U.S. Department of Housing and Urban Development's HOME Investment Partnership program next year. In addition, the legislation will stimulate the production of affordable rental housing by raising the Federal Housing Administration loan limits for the construction of multifamily housing in high-cost areas.
President Bush also recently signed new credit reporting legislation known as the Fair and Accurate Credit Transactions Act that includes many of the pro-consumer recommendations advanced by the National Association of Realtors' Insurance Task Force. Under this legislation, consumers will receive one free annual credit report; full disclosure of their numerical credit score and the factors influencing that score; notice of any negative impact on their credit score caused by multiple shopping inquiries; notification when negative information is added to their credit files; prompt investigation and correction of inaccurate credit information; and new tools to combat identity theft such as placing a fraud alert in their credit file. The legislation also calls for federal regulators to conduct a study of the effects of consumers' credit scores and credit-based insurance scores on the availability and affordability of homeowners insurance.
"Realtors around the country congratulate Congress and the president for their leadership in passing and signing legislation that will provide increased housing opportunities for more American families," said McDonald. "Thanks to these new laws, thousands of families will receive the down-payment assistance and credit information they need to obtain a mortgage and thus realize the American dream of homeownership."
Next year, the association's housing opportunities agenda will include efforts to increase the supply of affordable housing available for purchase through the enactment of homeownership tax credit legislation; a push to raise the conforming loan limits to more accurately reflect home-price appreciation in high-cost areas and thus provide lower loan costs for consumers; and efforts to ensure that Fannie Mae, Freddie Mac and the secondary mortgage market remain viable and healthy.
Information provided in this column is presented by the Realtor members of the Silicon Valley Association of Realtors at www.silvar.org. Send questions on any topic to jnewton@jnpr.com.
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