The National Association of Home Builders (NAHB), with its annual Fall Board of Directors meeting in Seattle taking place, issued a statement on Friday that came in the wake of the release of August employment figures showing that the United States economy was hit with its first decline in payroll employment for the first time in almost four years, including a large fall of 23,000 jobs in the residential construction industry.
The National Association of Home Builders is a Washington-based trade association which represents over 235,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product, and house manufacturing, and is known as “the voice of the housing industry.”
“In light of the significant decline in employment reported today, NAHB and its 2800 board members call on the Administration, Congress, and federal regulators — along with stakeholders in the private sectpr-to work in concert to prevent further deterioration in the housing market and erosion of growth in the nation’s economy. Today’s job report jolted Wall Street, demonstrating the paramount importance of restoring consumer and
investor confidence in the U.S. economy and housing market,” stated Brian Catalde, president of the NAHB.
The housing industry is facing an economic crisis due to the bursting of the housing mortgage bubble earlier in the year, which some financial analysts were predicting a few years ago.
Some market analysts have pointed out that the latest crisis in the house-construction and sales market, which many investors still fear could have a prolonged drag on the U.S. economy as a whole and might even engender a mini-depression, stems from the now-hyperaccelerated process of loan securitization, which involves banks and lenders quickly selling off underwritten loans to private investors, who then look to profit over the long-term from the payments made on the loans (with lenders selling the loans at a premium to profit in the short-term). These analysts point out that loan securitization is not going to go away any time soon.
Critics of the present system have sometimes been radical, and some call for going back to things that seemed to work in what they consider to be a better, vanished time in the U.S. financial system. One of the things they wish to have re-introuded is the dedicated lending system that was originally created by President Franklin D. Roosevelt and which was anchored by the Savings and Loan institutions.
These radical critics say that we have to reorganize our whole banking system and take away all of what they consider to be superfluous parts of the system such as mortgage lenders and mortgage brokers while reestablishing a system resembling the dedicated and highly regulated lenders put into place in the 1930s.They want Wall Street and the commercial banks shout out of the mortgage business as the nations returns to a community-based banking system for making the key decisions on mortgage lending.
National Association of Home Builders (PR Newswire), “Home Builders Issue Call for Action on Economy”