U.S. Representative Sue Myrick today announced her support of a proposal to stabilize the housing market through tax credits for homeowners and additional incentives for lenders to work with homeowners to avoid foreclosure.The proposal, crafted by House Republicans, would offer a $15,000 home-buyer credit for all home purchases for buyers who with at least a 5% down payment. This provision is identical to the Real Help for Homebuyers Act that Rep. Myrick introduced earlier this month.
“Homeownership is one of the most important long-term investments families can make,” Rep. Myrick said. “By offering these tax credits, we’re giving Americans – who invest a responsible down payment – the incentive to buy homes, increase their own wealth, invest in the economy, and help the housing industry to reduce the oversupply of houses.”
The proposal also offers a $5,000 refinancing credit so that homeowners can cover the cost of mortgage refinancing, buy down points or reduce their principal balance. Lenders would be given increased incentive to renegotiate troubled mortgages in exchange for homeowners agreeing to share a portion of future home appreciation with their lender. Under the Responsible Homeowners Act, lenders would not be taxed on this future profit, and homeowners would not incur any tax liability as a result of the refinancing. Homeowners would be able to take advantage of these provisions on purchases made before July 1, 2010.
It would also direct the FBI, Department of Justice and FHA to increase efforts to identify mortgage fraud and prosecute these cases.
“This proposal will help correct the housing market without rewarding irresponsible lenders and consumers who took advantage of the system in ways that have led to the problems we see today.” Rep. Myrick said.