Housing bill sails through Senate, cruising toward passage

Congress is moving quickly to pass a major bipartisan housing package that could indirectly boost liquidity for mortgage and home improvement lending. While much of the bill focuses on housing supply and community bank regulations, its passage signals a stabilizing environment for the institutions that fund your customers' major home projects. For contractors and home improvement retailers, this is a sign that the 'plumbing' of the financial system is being reinforced. The bill includes provisions that make it easier for community banks to manage capital and lending requirements. When local banks have more regulatory breathing room, they are generally more willing to approve personal loans and home equity lines of credit (HELOCs). These are the primary vehicles consumers use to fund big-ticket renovations and emergency repairs. If your business relies on customers securing their own bank financing before signing a contract, this legislative progress is a positive indicator for credit availability. The overwhelming bipartisan support suggests that housing remains a top priority for Washington, which may lead to further incentives for homeowners to invest in their properties later this year.

Source: American Banker — Top News

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