HousingWire – Chris Polychron (President-Elect for the National Association of Realtors.)
When banks aren’t approving mortgage loans and would-be homebuyers are denied access to credit, Realtors are among the first to know about it. In 2010, when cash-only sales and investors dominated the housing market because even buyers with superb credit histories and minimum down payments couldn’t qualify for mortgages, it was the Realtors who called on policy makers to take steps to loosen the tight credit environment.
That’s why Richard Cordray, the director of the Consumer Financial Protection Bureau, referred to Realtors as the “boots on the ground” last week when he joined me at NAR’s Capitol Hill office to brief reporters about the new mortgage lending rules that his agency implemented on January 10th. The new Ability-to-Repay rules are meant to prevent the predatory lending practices that led to the foreclosure crisis; practices that Realtors® warned were very risky as early as 2005 when NAR produced consumer brochures that encouraged buyers to shop carefully for mortgages.