Homebuilders seek up to $150B in stimulus

The Hill ^ | 07 Jan 2009 | Silla Brush

[BGHater]

Homebuilders are asking for up to $150 billion in the economic stimulus package being drafted by President-elect Obama’s administration and congressional Democrats.

The National Association of Homebuilders (NAHB) is working with 80 of its members to lobby lawmakers on their plan, which includes a mortgage foreclosure reduction effort, a homebuyer tax credit and a temporary program to reduce interest rates.

“This ain’t the time to be subtle. There is not a congressman or senator on the Hill who is looking forward to talking to you," NAHB Chief Executive Officer Jerry Howard told homebuilders at a meeting Wednesday morning.

Democrats have been pushing the Bush administration to use money from the $700 billion financial rescue package to help reduce the number of foreclosures, but the White House has yet to act.

NAHB, which had been pushing for help since the fall, has turned its attention to getting between $130 billion and $150 billion in the stimulus package. The total package is expected to be in the range of $775 billion.

“We believe this is a first salvo in a very short-term war possibly over before Inauguration day, possibly after,” Howard said.

“What the past efforts with TARP have shown and loans to the auto manufacturers is that the Band-Aid approach isn't working. The real damage is in doing one not big enough.”

The housing bubble that burst is at the center of the recession, and the mortgage market continues to show significant signs of stress.

The association is supportive of efforts by House Financial Services Committee Chairman Barney Frank (D-Mass.) and FDIC chairwoman Sheila Bair to craft plans to reduce foreclosures, but NAHB wants lawmakers to move on a housing effort in the economic stimulus package — congressional Democrats' top priority.

[xcamel]

At a meeting in Alexandria VA, Oct. 2008, NAHB Chief Executive Officer Jerry Howard said "Barny Frank is probably the smartest man in the Senate"

That is all you will ever have to know about Jerry Howard.

[misterrob]

Oh for Fu—’s sake.

Let’s prop up a market that needs to fall back to a market acceptable level. Let’s keep buiding and buying houses that people cannot afford in areas where there are too many in default or just plain unsold.

[poobear]

What are they going to do besides line their pockets, build more houses? Where I live there is quite a surplus of inventory.

[KarlInOhio]

We overbuilt on cheap credit which was a primary charge for the crash. So the fix is to do more of the same. Where did I put that definition of insanity?

[ilgipper]

considering he is not in Senate, this statement is truly remarkable.

[xcamel]

It’s funnier than that... I was there... He started to say “congress” and ended up saying “senate”. Nobody bothered to correct him.

[Emmett McCarthy]

Yeah, sure, fellas. After you drove the various subcontractors out of business by using the cheaper illegals who can live 15 or 20 to a house? Those contractors who were crushed in their greed are Americans who would have bought homes for their families and now can’t keep their damn lights on. Those illegals and their families put an enormous - unsustainable - drain on the public services sector. And they did crappy, half-a$$ed work that could get by during a “boom” but now buyers know they can demand better so these home builders (and flip house people) have to try to find skilled AMERICANS to come in and fix their crap before the house can be sold. And they cry “poverty” to try to get that skilled American to do it cheap. SCREW THESE PEOPLE! They were on the cutting edge in causing this mess and made a ton of money at it.

[freespirited]

Why do I have a sinking feeling that these guys will succeed?

[BGHater]

Of course they will.

[TChris]

"Barny Frank is probably the smartest man in the Senate"

[Night Hides Not]

Homebuilding 101: Now you know why homes built without a sales contract is a "spec" (speculative) home. Granted, I'm sure many buyers walked away from their contracts when the market turned south, but the vast majority had to be spec homes.

Bankers love making development loans. They lend up to 80% of appraisal, so they've got 20% to protect the downside.

I wonder how many builders catered to the flipper market?

[xcamel]

see #7

[org.whodat]

The scum is shaking the tin cup!!!

[org.whodat]

Yeah, sure, fellas. After you drove the various subcontractors out of business by using the cheaper illegals who can live 15 or 20 to a house? Those contractors who were crushed in their greed are Americans who would have bought homes for their families and now can’t keep their damn lights on. Those illegals and their families put an enormous - unsustainable - drain on the public services sector. And they did crappy, half-a$$ed work that could get by during a “boom” but now buyers know they can demand better so these home builders (and flip house people) have to try to find skilled AMERICANS to come in and fix their crap before the house can be sold. And they cry “poverty” to try to get that skilled American to do it cheap. SCREW THESE PEOPLE! They were on the cutting edge in causing this mess and made a ton of money at it.

You left out the part that they and the Realtors were two of the main organizations lobbying for free money lending and no credit checks and caused the whole damn problem. Good work!!! LOL!!

[org.whodat]

Tell them to get in line behind, the XXXX rated industry!! They and Larry flint have a lot in common when it comes to screwing people.

[Travis T. OJustice]

Seriously? Homebuilders screw people? That’s a hell of a comment regarding an entire industry.

[org.whodat]

Tell me one homebuilder that doesn't use illegal labor and I will exempt that “one” person.

[Travis T. OJustice]

Can you prove that any do? Yeah, plenty probably do, but I’ll also bet the industry you are in does as well. Does that make you as sleazy as Flynt? No, that is a stupid premise, just as writing off the entire homebuilding industry because a portion hire illegals is.

[Travis T. OJustice]

Also, that doesn’t fully support your initial premise.