Congressman Blunt Talks with Local, State and National HBA Leaders
Congressman Roy Blunt, also currently a candidate for the US Senate seat from which Christopher “Kit” Bond will be retiring, recently visited with local leadership as well as representatives of the state HBA, HBA of Greater Kansas City and a member of the national BUILD PAC board. Blunt listened and discussed current issues affecting home builders including the current credit crunch, appraisal issues and regulatory challenges.
“The NAHB continues to survey builders and developers across the country regarding challenges with AD&C financing. As they analyze this information it appears clear that under intense pressure from their bank examiners to reduce their exposure to development and construction loans to builders and curtail their outstanding portfolios of real estate loans, many lenders are refusing to make loans for viable new housing projects and cutting off the funding for performing loans, or calling them,” said Rusty MacLachlan, HBA Board President. “This is causing unnecessary foreclosures and losses on these loans. Survey responses demonstrate that performing loans are also being reappraised, reducing the value of the collateral and forcing borrowers to come up with large amounts of cash to keep their loans current.”
One possible positive development at the federal level housing experts feel may help the crunch is the Small Business Lending Fund Act of 2010 (H.R. 5297) which passed recently in House and is now ready to be taken up by Senate. It could provide $30 billion in additional capital to community banks to expand small business lending.