NAR President Testifies on FHA
NAR President Gary Thomas last week testified before the Senate Banking Committee on the importance of FHA in housing markets. In the testimony, Thomas explained that if FHA had not been providing insurance in the last 5 years, housing prices would have fallen another 25%.
Although FHA is fallen short on its required reserves, FHA has made significant changes to increase revenue and mitigate risks. Thomas cautioned about making arbitrary changes to FHA, such as further increasing costs to consumers or limiting the use of the program to certain types of buyers, only for the sake of luring back private markets.
NAR welcomes a reduction in FHA's market share when the private market returns, but Thomas stated that "we aren't there yet!"