Bush speaks on increasing homeownership, Martinez holds Spanish-language town hall. (Business Alert).

PRESIDENT GEORGE W. BUSH DELIVERED A speech on June 17 before Atlanta city officials and business leaders, calling on the public and private sectors to work together to increase homeownership in America. "We congratulate President Bush for his recognition of the vital role homeownership plays in families, communities and the U.S. economy. President Bush and (HUD) Secretary Mel Martinez have consistently demonstrated their commitment to making the American dream a reality for moderate-and low-income working families," said James M. Murphy, MBA chairman.

The president, citing affordability as a major obstacle to homeownership, raised a number of initiatives that MBA supports, including the following:

* American Dream Downpayment Fund--designed to increase the homeownership rate among underserved populations, the program, included in Bush's FY 2003 budget, will provide $200 million in grants to first-time and low-income homebuyers over the next five years to cover down payment and closing costs.

* Tax credits--the tax treatment of real estate can dramatically influence the production of affordable housing, homeownership and community revitalization. MBA supports depreciation and capital gains reforms, appropriate access to tax return information to ensure safe underwriting, a reduction in the recovery period for depreciation of leasehold improvements, estate tax reform and reforms to low-income housing tax credit programs. In addition, MBA supports enactment of commonsense bankruptcy changes, including reforms to the treatment of single-asset real estate.

* Consumer education--is critical to protecting consumers from unscrupulous lenders. MBA has advocated for more programs to help educate consumers, and in the spring of 2002 launched the Stop Mortgage Fraud campaign to provide consumers with the 10 warning signs of predatory lending, a consumer bill of rights and information on where to report suspected abusive lending practices.

* Simplify and reform the mortgage process--as currently written, both RESPA and the Truth in Lending Act (TILA) are confusing and complex. Comprehensive reform is necessary, not only to increase accessibility and clarity of laws, but also to accommodate improvements in technology that have taken place in the financial sector since the passage of the original acts.

HUD Secretary Martinez held a town hall meeting in Charlotte, North Carolina, sponsored by the Homeownership Alliance. The meeting was conducted in English and Spanish to explain Bush's initiative to expand homeownership among minority families, and was held at Our Lady of Guadalupe, Charlotte's only Hispanic Catholic church, which holds Spanish-language Masses every weekend. Housing and credit counselors and representatives of the city of Charlotte were also on hand to provide information. "Last week, President Bush set a goal to increase the number of minority homeowners by 5.5 million by the end of the decade. I'm pleased that so many of HUD's partners are here today in Charlotte to help us get started on this ambitious goal," said Martinez.

"Secretary Martinez has made it a top priority to help more minority families achieve the American dream," said Bob Mitchell, chairman of the Homeownership Alliance. "It is fitting that as part of National Homeownership Month, we partner with HUD to share information in Charlotte, one of the fastest-growing Hispanic communities in the country."

Bush announced initiatives designed to break down barriers to homeownership, including the American Dream Downpayment Fund, a single-family tax credit and a housing counseling program. Bush also put forth "America's Homeownership Challenge," a call to the real estate industry, the mortgage finance industry and nonprofit organizations to join with the administration in expanding homeownership opportunities across the country.