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RHODE ISLAND ASSOCIATION OF REALTORS®, INC.

"The Voice of Real Estate in Rhode Island"
Serving Rhode Islanders Since 1948
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Press Release

Contact: Kerry Park
Ph: 401-432-6948
Email: kerry@rirealtors.org

 

NAR Bus Tour Brings Home Ownership Matters to RI

Warwick, RI, August 26, 2011... (updated August 31, 2011) The National Association of REALTORS® (NAR) Home Ownership Matters bus tour came to Warwick yesterday to spread the word about proposals in Washington that could have a major impact on home ownership and the housing recovery.  Since March of this year, the NAR leadership team has conducted the multi-city bus tour to promote the benefits of home ownership, as part of the Home Ownership Matters campaign and highlight the issues in Washington affecting the housing market. 

National Association of REALTORS® President Ron Phipps, and Stephen Antoni, President of the Rhode Island Association of REALTORS® (RIAR), joined RIAR CEO Susan Arnold to discuss key issues currently pending in Washington:  the extension of the National  Flood Insurance Program, which is set to expire at the end of September; the proposed Qualified Residential Mortgage rule (QRM) which calls for a minimum 20 percent down payment on home sales: higher loan limits set to take effect in October; restructuring of the secondary mortgage market; and a change to the mortgage interest deduction which would affect not only income after taxes, but home valuation for millions of middle class Americans.

Bus Tour Brings Home Ownership Matters to RI"There are many proposals being discussed in Washington which could have a major impact on home ownership," said Stephen Antoni, President of the Rhode Island Association of Realtors. "It's important that home owners and potential home buyers understand how these proposals could impact them. With this bus tour, Realtors across the country are trying to educate people about what's going on in Washington and encourage them to make their opinions about housing issues known to their representatives in Congress."

For example, on September 30, FHA loan limits may be allowed to revert to 115 percent of an area's median home price, down from a current 125 percent. In Rhode Island, the loan limit would be reduced by $48,350 - from a current limit of $475,000 to $426,650.  Reducing the current loan limits would allow fewer people to access mortgage loans and the loans that would be available would be more expensive, as many buyers would be forced into jumbo mortgages. Fewer qualified buyers for accessible loans could also hinder the housing market recovery.

Another proposal which could further dampen the housing market is the Qualified Mortgage Rule (QRM) in which many future borrowers may have to come up with a 20-percent down payment. Borrowers with less than 20 percent down would have to choose between higher fees and rates - up to 3 percentage points more - or a 9-14 year delay while they save up the necessary down payment.

According to the recently released 2011 National Housing Pulse Survey, 51 percent of self-described "working class" home owners reported that a 20 percent down payment would have prevented them from achieving their dreams of home ownership. NAR estimates that it would take 14 years for the typical American family to save enough money for a 20 percent down payment.

"Strong evidence shows that responsible lending standards and ensuring a borrower's ability to repay have the greatest impact on reducing lender risk, and not high down payments," commented Antoni.

As policymakers consider changes to government programs and incentives that could dramatically change the nature of home ownership in this country, the Home Ownership Matters Bus tour has brought these issues directly to people across the United States, asking them to join in protecting the American dream of home ownership. Information about the issues can be found on Realtor.org.  Ongoing news and information for the tour will be posted on HouseLogic at www.houselogic.com/bus.

HouseLogic is a free source of information from NAR that helps home owners maintain and enhance the value of their homes and engage in issues that affect their local communities.

View pictures from the event on RIAR's Facebook page.

Note: Information is provided by State-Wide Multiple Listing Service, Inc. Readers are cautioned that the median sales price --- with half the prices higher and half lower --- generally reflects the quality and the mix (type and size) of the properties being sold at the time and is not a true measure of home values.

 

Stephen Antoni

2011 REALTOR®
State President

 

About the Rhode Island Association of REALTORS®

The Rhode Island Association of REALTORS®, one of the largest trade organizations in Rhode Island with more than 5,000 members in nearly 1,000 offices, has been serving Rhode Islanders since 1948. Advocating for Rhode Island's property owners, the Rhode Island Association of REALTORS® provides a facility for professional development, research and exchange of information among its members and to the public and government for the purpose of preserving the free enterprise system and the right to own real property. Last year, RI Realtors transacted $6.9 billion in residential real estate sales and $7.1 billion in total sales and rentals including commercial transactions.

The Association is one of more than 1,500 boards and associations that comprise the National Association of REALTORS® (NAR). The National Association of Realtors®, “The Voice for Real Estate,” is America's largest trade association, representing over 1.5 million members involved in all aspects of the residential and commercial real estate industries and who subscribe to a strict Code of Ethics.

REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics.