Senate Bill Would Spur Lending to Builders

Washington, DC, Feb. 8, 2012 -- The National Association of Home Builders commended Sen. Robert Menendez (D-NJ) for introducing the Home Building Lending Improvement Act of 2012, legislation to help restore the flow of credit for new housing production.

NAHB said new housing inventories are at or near record lows in many parts of the country but banks have largely cut off home builders from the credit they need to finance new projects or complete those still underway.

Similar legislation to resolve the ongoing credit problems for home builders was introduced in the House last year by Reps. Gary Miller (R-Calif.) and Brad Miller (D-N.C.). H.R. 1755, the Home Construction Lending Regulatory Improvement Act, currently has 87 House cosponsors.

The legislation deals with bank capital requirements, appraisals, and other items.