NAR: Banking reform may boost real estate
The National Association of REALTORS has expressed support for the Economic Growth, Regulatory Relief and Consumer Protection Act, a banking reform bill the Senate plans to take up this week. The bill could open up more lending to households aspiring to become homeowners, said NAR.
The bill balances consumer protections with changes that could make home lending more readily available to people who need it, including renters struggling to acquire a mortgage because they haven’t yet amassed a conventional credit history. The bill includes a requirement that Fannie Mae and Freddie Mac accept rent and utility payment history as part of loan applications’ credit scores.
The bill also reduces some regulatory burdens on credit unions and smaller community banks, which are often the main source of home mortgage financing in rural areas.
The House has already passed its version of banking reform, known as The Financial Choice Act. Should the Senate pass its version, the bills will have to be reconciled.