Banking Ranks In September, the NAHB applauded the Federal Home Loan Bank of Des Moines' successful efforts to include single-family construction loans as eligible collateral for member loans. The Des Moines Bank received approval from its regulator, the Federal Housing Finance Board, on Sept. 10 to accept one-to-four-family construction loans as part of a basket of other real estate collateral that may back the Bank's secured lending to member financial institutions in its district, which includes Iowa, Minnesota, Missouri, North Dakota, and South Dakota. With this regulatory approval, the Des Moines Bank can proceed in developing specific collateral criteria with the intent of implementing its expanded authority in the near future. “In adding construction loans to its collateral menu, the Federal Home Loan Bank of Des Moines has shown outstanding responsiveness to credit needs in its district,” says NAHB President Brian Catalde. “The collateral expansion is an important signal that the Des Moines Bank is making every reasonable effort to support the home mortgage lending of its member institutions, in addition to establishing a long-term foundation for housing production credit availability. This news further highlights the very positive role of the Federal Home Loan Banks in supplying credit during the current mortgage market difficulties.”
In With the Old The NAHB announced the 25th anniversary of its NAHB Remodelers (NAHBR) council in August. Formed in 1982, in response to growing member demand, the council was created as a way to deepen knowledge and professionalism and to promote the accomplishments of remodelers. “For 25 years, NAHBR has trained, supported, and promoted the best professional remodelers in the country,” says Mike Nagel, NAHBR chairman and a remodeler from Chicago. “This council and its members have been instrumental in advancing the industry, and we are proud to celebrate this significant anniversary and look forward to continued growth and success.” Remodeling has grown into a booming $228 billion business, and NAHBR has grown along with it, with membership now topping 7,500. NAHBR has expanded its offerings to include everything from training courses and certifications to remodeling guides for consumers and advice for remodelers on expanding and maintaining their businesses. For more information about remodeling, visit www.nahb.org/remodel.
Condo Crisis Despite reporting increased traffic by prospective buyers, condominium builders and developers are concerned about current conditions in the condo market, according to September's results of the Multifamily Condo Market Index (MCMI), released by the NAHB. The index lost 14 points in the second quarter of this year to stand at 18, which is 14 points lower than it was a year ago—and its lowest level since the NAHB created the index five years ago. “The problems in the mortgage market are rattling consumer confidence in for-sale housing at the same time that the condo sector is trying to shake off excess inventory in a lot of markets,” says David Seiders, NAHB chief economist. “That combination is delaying any recovery in the condo sector.”
Learn more about markets featured in this article: Des Moines, IA.
