REALTORS® believe in a responsible, sustainable model for home ownership, and current credit policy restrictions are not conducive to that model. Today’s tight credit restrictions are preventing some qualified buyers from becoming home owners, and making it tougher for some home owners to sell their homes.
NAR has identified specific recommendations for adjusting the current unduly restrictive credit policies. In addition, NAR has distributed its new Credit Policy and met with industry groups and regulators to emphasize the importance of reasonable underwriting policies. The current book of business at the GSEs and FHA has been referred to as "pristine." NAR believes pristine loans are the result of excessively tight underwriting, not sound business practices. The GSEs and FHA have a public mission to provide mortgage liquidity to qualified home buyers, including low- and moderate-income families and first-time home buyers. This mission is being impaired by limits on the availability of credit. NAR believes a reassessment of these policies will not only help well-qualified potential borrowers, but also the entire housing market.