home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Real Estate News | Real Estate Statistics
Residential real estate news and coverage of how residential real estate impacts the mortgage industry and residential mortgage-backed securities.

Builders Struggling With Credit

Home builders testify before Congress

April 30, 2008

By MortgageDaily.com staff

Residential home builders, who have seen the pool of new homebuyers diminish with the contraction in available credit, are now finding it more difficult to obtain or extend financing for new developments. The sector is looking to banking regulators and government-sponsored enterprises for help.

The credit crunch is actually getting worse despite the concerted efforts of central banks worldwide, Illinois Home Builders Association President Scott Eckstein said today in testimony before the House Small Business Subcommittee on Finance and Tax, according to an announcement from the National Association of Home Builders.

He noted homebuyers are having a tougher time obtaining financing.

"The mortgage credit crunch will continue to be the most significant factor impacting the home building industry into the foreseeable future," Eckstein said. "There is deep concern that the dislocations in the financing markets will increase the depth and length of the housing downturn."

Terms on residential loans for land acquisition, land development and home construction are worsening, he explained. The availability of AD&C loans, which enable the development of a project's infrastructure and construction, is also deteriorating.

"Builders are reporting an adverse shift in terms and availability on loans for land acquisition, land development and home construction," Eckstein stated. "Defaults on AD&C loans are rising. In this environment, banks are actively reducing exposure levels to home credit."

He testified that builders with outstanding AD&C loans are facing increasing challenges because falling appraisal values are prompting lenders to seek additional equity for outstanding credit. In addition, lenders are "balking" at loan extensions.

Eckstein recommended that Fannie Mae boost its AD&C activity and called for Freddie Mac to create a similar program. He also suggested that housing production loans be accepted as collateral for secured advances to member institutions of the Federal Home Loan Banks.

Other recommendations by Eckstein included FHA insuring the construction portion of AD&C loans, Wall Street securitizing AD&C loans and banking regulators using more optimistic assumptions about future home sales.

Political Mortgage News | Mortgage Laws
Mortgage people in politics. Political contributions by mortgage companies. Coverage of political support by lenders and executives. GSE lobbying and issues.

GSE News | Fannie/Freddie Share Statistics
Fannie, Freddie and FHLB news. Coverage of government sponsored enterprise regulation, operations and litigation.

FHA News | Government Resources | M o r t g a g e e Letters | FHA Statistics
FHA, VA and HECM mortgage news. HUD and G i n n i e news also. Originations, servicing and FHA approval.

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders