You can help the economy...FIX HOUSING FIRST!

The historic increase in foreclosures, tightened mortgage qualifying criteria, and general declining economic conditions have significantly cut demand for housing. Housing wealth is the primary source of savings for most households and a key driver of consumer spending. BANN is just one of the 600 + businesses supporting the Fix housing First Coalition, lead by NAHB.

The coalition plan suggests, a new home buyer tax credit would be substantially increased to 10 percent of the price of the home, up to $22,000. Unlike the current credit, it would not be limited to first-time buyers and the homeowner would not be required to repay the credit.

The coalition recommends a mortgage interest rate buy down to get buyers back in the market and further stimulate the economy. Suggested interest rates range from 3.99 to 2.99 %for homes purchased by the end of December 2009. Intensive efforts to prevent foreclosures and keep people in their homes are also included.

The stimulus plan will produce:
• 1.2 million additional home sales in the first wave
• Another 274,000 from a ripple effect
• Absorption of 211,000 vacant units
• 593,000 jobs across all industries
• $29 billion in wages and salaries
• $13 billion in small business income
• $20 billion in tax revenue for federal, state and local governments

Congress is currently crafting economic stimulus legislation that will most likely be debated and voted on by Congress in early January. It is expected that President-elect Barack Obama will sign stimulus legislation soon after his inauguration on January 20. Now is the time to tell Congress to fix housing first and ensure that housing recovery measures are incorporated into the stimulus package.

Here’s how you can help…visit www.FixHousingFirst.com and click on the “Tell Congress Now” link to send an electronic letter to Congress and urge their support for a homebuyer tax credit and short-term mortgage subsidy. In addition, ask Congress to re-examine the need for regulators and lenders to give leeway to residential construction borrowers who have loans in good standing.