The Official Online Newspaper of NAHB
To help small business firms address their difficulties in obtaining credit, the Federal Deposit Insurance Corp. (FDIC) has announced the creation of a new hotline and website that enable small business owners — including builders — to register specific issues or problems they may be having with credit availability.
Ending the severe acquisition, development and construction (AD&C) credit crunch that has cut off the flow of credit for housing production remains NAHB’s top priority. This new development presents a unique opportunity for association members to weigh in directly with the FDIC to discuss any business constraints they are facing as a result of the scarcity of credit for housing.
“Any home builder, developer or associate who is unable to obtain financing, is having a hard time with an outstanding AD&C loan or feels that they have been treated unfairly by their lending institution should alert the FDIC either through the hotline or their website,” said NAHB Chairman Bob Nielsen. ... Read More
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With NAHB members continuing to face severe business constraints from the scarcity of credit for housing, the association’s board of directors at its Jan. 14 meeting in Orlando focused on the urgency of restoring the flow of acquisition, development and construction (AD&C) loans.
“Alleviating a crippling drought of AD&C lending remains our top priority,” builder Bob Nielsen, who was elected chairman of NAHB at the conclusion of the board meeting, told his fellow directors. “Reports from the field indicate that we need to resolve this critical issue as quickly as we can, before we see the shuttering of more home building businesses and further weakening of the anemic housing recovery we hope to get underway.”
Economists attending the meeting noted that the AD&C credit crisis is persisting even in parts of the country whose markets are returning to normal and are poised for recovery. Even where the viability of existing and proposed housing projects can be well demonstrated, they noted, the credit crunch is taking a heavy toll, particularly among the smaller builders who are the mainstay of the industry. ...... Read More
Housing will see gradual improvements in activity this year as the nation’s economy and job market continue to move to higher ground, establishing momentum that will produce more considerable gains in 2012, according to economists who appeared at the NAHB International Builders’ Show in Orlando on Jan. 12.
“This year’s spring selling season will be better than last year’s,” said NAHB Chief Economist David Crowe, with job growth providing a stronger stimulus in the housing market than last year’s tax credits for home buyers.
Crowe forecasted 575,000 single-family home starts in 2011, a 21% climb over an estimated 475,000 units started in 2010, which in turn showed a 7% gain from the 442,000 homes started in 2009. ...... Read More
|* Seasonally Adjusted Annual Rate|