The National Association of Hispanic Real Estate Professionals (NAHREP) has called on the U.S. Senate Committee for housing finance reform, citing increasing constriction of credit as unsustainable for the future.
Hispanic markets are large enough to drive a full economic recovery, but legislation needs to provide a stabile secondary market, according to NAHREP.
In a letter to the Senate Committee on Banking, Housing & Urban Affairs, NAHREP President and mortgage banker Jason Madiedo says that while the current proposed legislation may be on the right track, it does not go far enough to meet the needs of an increasingly diverse home buying market.
Referring to the Housing Finance Reform and Taxpayer Protection Act of 2014, proposed by Committee Chairman Tim Johnson and Ranking Member Mike Crapo, Madiedo's letter includes the following:
"The status quo of the [government-sponsored enterprises] in conservatorship – a system dominated by government support – and increasing constriction of credit simply cannot be sustained.
"NAHREP believes we need legislative reform, and we support S. 1217 with some important caveats. To sustain a liquid secondary market, we're pleased to see the Bill provides a government "backstop' but clearly intends to put private capital in front of taxpayer risk.
"It is estimated that 40 percent of all new home buyers will be Hispanic in the coming years. We support the modest 3.5 percent down payment opportunity for first-time home buyers – clearly a high priority for constituents of NAHREP."
Gary Acosta, NAHREP co-founder and CEO, says, "Success in addressing the requirements of the minority market is essential for a sustainable economic recovery, job creation and long-term stability."
Citing NAHREP's 2013 State of Hispanic Homeownership Report released last month, Acosta explains, "Since 2010, Hispanics have accounted for a net increase of 559,000 owner households, representing 56 percent of the total net growth of owner households in the U.S." He says that by 2015, their purchasing power is set to be an estimated $1.5 trillion, which is an increase of $500 billion from 2010.