The National Mortgage Complaint Center, a consumer advocacy group that tracks and responds to complaints in the U.S. residential mortgage market, is warning of further declines in the U.S. housing market. The group is asking the congress to immediately introduce legislation to restore buyer tax credits. But unlike the original buyer tax credit from the early days of the housing crisis in 2009, NMCC is asking that all qualified buyers of housing be offered a tax credit, not just first time buyers, and they want more money for a new tax credit.
NMCC says that this tax credit should be at least $15,000, and apply to investor buyers as well. The group has called Obama Administration attempts to help the housing market an “utter failure, and a waste of taxpayer money”.
Here is a quote directly from the NMCC press release:
“If someone in the federal government does not exert some leadership immediately, it might be too late for the US residential real estate markets, and our economy. We appreciate the concept of free enterprise, and or risk, and return is lost on President Obama, but someone in DC had better start thinking outside of the box now, or it could be too late to do anything about the sinking US residential real estate markets.
The NMCC is also concerned that government programs focus too much on trying to make mortgage lenders qualify poor or low income borrowers, thereby introducing unqualified and unprepared home owners into the housing market, which has helped create the current housing market crisis.
While the group strongly believes that qualified buyers should be given significant tax breaks to help jump-start housing sales, it also said that the housing market cannot withstand another round of sub-prime loans to low income borrowers who are not prepared to own a home at present. In short, NMCC wants to see the government get out of the way and allow the free housing market to operate, without forced social engineering.
NMCC is concerned that there are a number of problem areas still weighing heavily on the housing market, and that a second recession could be inevitable if the government does not take decisive action soon.
It should be noted that the only period of housing recovery and stabilization since 2008 was reflected in the housing data during the time when the original buyer tax credit existed. Since it’s expiration in 2010, housing has continue it’s decline, with only marginal improvements that can be attributed to seasonal factors, not real growth.