50+ Housing e-Source - 04/30/2008 (Plain Text Version)

Joanne Theunissen
50+ Housing Council Chair

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In this issue:
50+ Consumers Are Buying Into Green Technology
Attend the 50+ Housing Council Networking Reception This Thursday!
50+ Symposium Highlights
The Economy Faces a Mild Recession
Mortgage Credit Crunch Stimies AD&C Lending
Wall St. Journal Features Products for 50+ Market.
Lifelong Learning: A New Trend in Senior Communities
Council Member Honored in Livable Communities Ceremony
The Big Hunt Sets Its Sights On National Membership Day
Resources: NAHB Technology Services Directory

Mortgage Credit Crunch Stimies AD&C Lending

The mortgage credit crunch has spilled over into AD&C lending for new residential construction, thereby increasing the many challenges faced by builders in the current housing downturn, said Past NAHB President Bob Mitchell, in testimony before the Senate Small Business Committee on April 16.

Reporting on the topic of "The Impacts of the Credit Crunch on Small Firms," Bob told lawmakers that, while tighter mortgage lending terms have made it difficult for home buyers to obtain financing to purchase new homes, "Likewise, there have been dramatic adverse swings in the cost and availability of acquisition, land development and home construction (AD&C) loans for home builders."

He noted that the current situation "vividly illustrates the importance of developing additional sources of AD&C credit." He pointed out that currently there is no secondary market for residential AD&C loans where community banks could turn to help manage their balance sheets and obtain liquidity for additional lending.

View the full press release here.

For more information, e-mail Donna Reichle, or contact her at 800-368-5242 x8473.