NAHB Pressures Congress on Credit, Deduction

Washington, DC, March 4, 2011 -- The National Association of Homebuilders has asked Congress to take measures to improve access to credit for homebuilders as well as not alter the home mortgage interest deduction.

"It is clear that congressional action is needed to help open the flow of credit to home builders," NAHB Chairman Bob Nielsen told members of the House Financial Services Subcommittee on Financial Institutions and Consumer Credit.

He also noted that the mortgage interest deduction has been a cornerstone of the nation's housing policy for almost a century, and it is vital to homeownership and healthy housing markets.

NAHB has presented banking regulators with specific instances of credit restrictions and requested specific changes to current regulatory guidance.

The association said it will also soon offer Congress suggestions for fixing specific instances of regulatory excess while helping to ensure adequate credit availability to builders.

NAHB has also urged the House to show support for homeownership and the mortgage interest deduction by co-sponsoring H. Res. 25.

"This resolution acknowledges the importance of homeownership to individual households, the economy and the nation," Nielsen said.

The resolution also states that the mortgage interest deduction "may well be the most important component of housing-related tax policy in America today" and should not be further restricted, he said.