This past Tuesday, President-elect Barack Obama worked to win another $350 billion from Congress, with more to come later, in an effort to stimulate the economy. One way Mr. Obama can help stimulate the economy is in the housing market, as was suggested by the National Association of Realtor's President Charles McMillan in his address the House Financial Services Committee.
With the housing sector at the core of the current economic crisis, a boost in the housing market will be vital to generate commerce and helping families build wealth. Even though Congress might still have a few questions, they are likely to give the okay this week on the second half of the original $700 Billion bailout approved last year. Then, President Barack Obama can start using the money within a matter of days after his inauguration. The focus on helping homeowners avoid foreclosure, helping people get school and car loans, and making sure that taxpayers' money isn't distributed to high salaries or bonuses for Wall Street executives.
Additionally, McMillan congratulated the committee on H.R. 384, the TARP Reform and Accountability Act, which was introduced last week. Many parts of this bill do reinforce NAR's suggested recovery plan to stimulate housing investment by mitigating foreclosures, helping current homeowners, and providing needed liquidity in the commercial mortgage markets to help ensure that financing is available. NAR's plan is to ensure that the Troubled Asset Relief Program gets back on track by targeting funds for mortgage relief. This will, in turn, help lower mortgage rates and reduce foreclosures as well as eliminate the repayment feature of the first-time home buyer tax credit, thus expanding it to all home buyers. It is also meant to assist in lowering mortgage interest rates through a buy-down program. McMillan further stated, "We are pleased that Congress is moving forward on these important issues. Together these actions will build a solid foundation for a housing recovery."