FALLS CHURCH, Va. – Feb. 1, 2012 – President Obama released more details today about a proposed housing plan first announced during his State of the Union address. The National Association of Realtors® (NAR) quickly backed the program, but it faces an uphill battle in Congress.

“As the nation’s leading advocate for homeownership and housing issues, NAR knows that stabilizing the housing market is key to the health of our economy and communities across the country,” says NAR President Moe Veissi, broker-owner of Veissi & Associates Inc. in Miami and 2002 president of Florida Realtors. “We are pleased that the president released a plan to help America’s struggling housing market and homeowners. Improving access to simple, low-cost refinancing and streamlining the process will help hardworking families who have stayed current on their mortgage payments and will go a long way to helping keep more families in their homes.”

Obama’s plan would help eligible, underwater homeowners who are current on their mortgage payments to refinance or modify their loan into safer, more affordable mortgages at today’s historically low interest rates. Homeowners could potentially save hundreds of dollars each month, and it could reduce foreclosure rates.

The plan also announced a Federal Housing Finance Administration (FHFA) pilot program to transition Real Estate Owned (REO) properties into rental housing. However, NAR urged FHFA to proceed cautiously with any REO-to-rental program, pointing out that the nation’s housing markets are complex and varied. According to NAR, any REO-to-rental program should involve substantial participation of local market experts, especially licensed real estate professionals.

The plan needs Congress’ approval to move forward, however. To pay the $5 to $10 billion cost, Obama recommends a new fee on large banks that failed to pass when recommended earlier. Obama, though, says he’s also willing to consider other ways to pay for the program.

“Realtors are eager to work with Congress and the administration to put the plan into action,” said Veissi. “We hope that the president and Congress will work together to pass the necessary legislation.”

© 2012 Florida Realtors®