July Reporter

Reporter

NORTH TEXAS HOME BUILDERS ASSOCIATION Volume 4, No. 7

PRSRT STD US POSTAGE PAID WICHITA FALLS, TX PERMIT NO. 491 ADDRESS SERVICE REQUESTED

4410 Fairway Boulevard • Wichita Falls, Texas 76308 Phone (940) 692-2211 • Fax (940) 692-2214

Wichita Falls, Texas

July 2011

North Texas Home Builders Association

GENERAL MEMBERSHIP MEETING

July 7, 2011 • 11:30 A.M.

Howard Johnson Plaza Hotel 401 Broad Street

PROGRAM

Presentation of Scholarships

by Randy Schaffner

HOUSING POLL

Today, the nation faces an unprecedented assault on housing that threatens to derail nearly 100 years of national policy promoting the value of homeownership, and the public remains largely unaware of the potential catastrophe that lies ahead: • A sharply limited availability of long-term, fixed-rate mortgages • A huge jump in the cost of mortgages • Minimum downpayments of 20 percent or more • A severe reduction in mortgage credit

One of the primary targets of this unjustified attack on housing is the mortgage interest deduction. This cornerstone of American housing policy has been in place since the inception of the tax code in 1913 and supports the aspirations of families at all income levels to become home buyers.

Although Americans overwhelmingly oppose any action by Congress to tamper with the mortgage interest deduction, according to the results of a recent poll conducted by the Republican and Democratic polling firms of Public Opinion Strategies and Lake Research Partners for the National Association of Home Builders, many lawmakers have expressed a willingness to eliminate or curtail this vital housing tax provision. Such a move would further depress home values, leaving more home owners with “underwater” mortgages larger than the value of their property and fueling even more foreclosures.

The polling also found that home owners and non-owners alike consider owning a home essential to the American Dream. An overwhelming 75 percent of those surveyed said that owning a home is worth the risk of the fluctuations in the market, 95 percent of the home owners said they are happy with their decision to own a home and 73 percent of renters said that owning a home is one of their goals.

Meanwhile, six federal agencies are proposing a national Qualified Residential Mortgage standard that would require a minimum 20 percent downpayment and other stricter qualifications, which would keep homeownership out of reach for most first-time home buyers and middle-class households. The National Association of Home Builders

estimates that it would take 12 years for a typical family to save enough money for a 20 percent downpayment on a median-priced single-family home and other research has found it would take even longer.

Some members of Congress are actively pushing to abolish Fannie Mae and Freddie Mac and end the federal backstop for housing. Absent a federal role to help absorb market risk, private lenders would DOUG McCULLOCH President increase interest rates and fees on all types of available financing options. The 30-year, fixed-rate mortgage, the major housing finance tool for most Americans, would become increasingly scarce and much more costly, pricing many credit-worthy borrowers out of the marketplace.

Complicating the situation, the federal government is looking to trim back the Federal Housing Administration’s participation in the market, which would further limit the availability of low downpayment mortgages.

As policymakers debate the housing finance and budget issues that will impact job creation and future growth, they must understand the important role that housing plays in the U.S. economy. Building 100 average single-family homes generates more than 300 jobs and nearly $9 million in taxes and revenue for state, local and federal governments.

The federal proposals now under consideration would reverse national housing policies that have helped generations of American households to own their homes, enter the ranks of the middle-class, build strong and stable neighborhoods and communities and provide a steppingstone to greater long-term financial security.

For these reasons, it is important that policymakers be fully aware of the depth and breadth of housing’s many contributions to American society and that owning a home is a strong core value for most American households.

BRYAN WAGGONER 3907 Kell Boulevard • Wichita Falls • Texas 76308 (940) 691-3641 Fax (940) 691-3643 • (800) 466-3642 E-Mail bryanl@waggonercarpetone.com

REALTOR WINS PARADE OF HOMES GRAND PRIZE

By Lee Grace

Rose Martinez was the “Grand Prize” winner of the 2011 Parade of Homes. Her name was drawn from all the persons who purchased tour tickets and then turned in their tickets after they had toured the Parade entries. Steve Fairchild, general manager of Hamilton-Bryan presented Rose with a 5.8 cubic-foot Maytag Beverage Center.

Association President Doug McCulloch presents a check to Dan Gray, executive director of Habitat of Humanity of Wichita Falls.

Also is Kathie Forehand, development director for Habitat Doug McCulloch, president of the North Texas Home forshown Humanity. The Parade of Homes is one of the biggest fund raisers of the year for Habitat for Humanity.

Builders Association, said this year’s Parade of Homes Association President Doug McCulloch is shown with Grand Prize winner Rose Martinez and Steve Fairchild, general was a tremendous success. Fifteen homes participated in the June event that drew more manager of Hamilton-Bryan, who donated the Grand Prize, a 5.8 cubic-foot Maytag Beverage Center. viewers than seen in several years. Again this year, half of the funds raised through the ticket sales were given to Habitat for Humanity of Wichita Falls.

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Calendar of Events

INDEPENDENCE DAY - OFFICE CLOSED................................................................................................ July 4, 2011 MEMBERSHIP, MEETINGS & EDUCATION COMMITTEE MEETING.......................................................... July 6, 2011 • 10:00 a.m.

GENERAL MEMBERSHIP MEETING ........................................................................................................ July 7, 2011 • 11:30 a.m PARADE OF HOMES & SPECIAL EVENTS COMMITTEE MEETING........................................................... July 13, 2011 • 10:00a.m.

BUDGET & BY-LAWS COMMITTEE MEETING ........................................................................................ July 19, 2011 • 9:15 a.m BOARD OF DIRECTORS MEETING ........................................................................................................ July 20, 2011 • 11:00a.m.

THANK YOU for your participation and willingness to give to the 2011 Parade of Homes. We could not have done it without you!

Our Builders - David Bedingfield Homes, Dennis Company Homes, Douglas Custom Homes, Garnel Construction, Harmon & Holcomb Homes, Klasse Homes, Lance Friday Homes, Mountain Construction, R.J. Wachsman Homes, Rhone Building Corporation, Rowland & Donnell Homes Our Corporate Sponsor - Builders Lumber Company Landmark Title Company for sponsoring a magnificent Kick-Off Lunch

Our Housing Guide Advertisers - American National Bank, Allred Thompson, Mason, Daugherty Insurance, Atmos Energy, Binswanger Glass Company, Breegle Building Products, Dutch Watson Cabinets, The Ember Shop, Ferguson Enterprises, Ferguson-Veresh Heating & Air, Fidelity Bank, First Bank, Guarantee Title Company, JAM-Doors, Windows & Millwork, Landmark Title Company, Lantern House, Lowe’s, Marble Works, Inc., Morrison Supply Company, S & H G r a n i t e , S m i t h ’s G a r d e n t o w n , Stewart Title Company, Texas Carpet Outlet, Texoma Community Credit Union, Union Square Federal Credit Union, Vic & James Paint Center, Waggoner Carpet One and Woodco Supply Company Those who donated prizes - Hamilton Bryan, Archer Title, Fidelity Bank, First National Bank and State National Bank.

Those of you who took the time to participate in the Kick-Off Lunch and Ribbon Cutting and the people who bought tickets and visited the Parade Homes.

You are greatly appreciated!

Congratulations to these Winners! Rose Martinez winner of the Under Counter Beverage Center donated by Hamilton Bryan, Guarantee Title winner of a ceiling fan donated by Fidelity Bank, Vivian Kirkpatrick winner of the golf bag donated by State National Bank, Rebecca Lammers winner of a $25.00 gift card donated by Archer Title Company, Linda Taylor - winner of a $25.00 gift card donated by Archer Title Company and Rick Spicer winner of a $25.00 gift card donated by First National Bank. We also extend our apology to Landmark Title for the omission of their ad in the Housing Guide.

HOME BUILDER MEMBERS TOUR AIR FORCE TRAINING FACILITY Thirteen members of the North Texas Home Builders Assocation spent Thursday, June 23, touring the 363rd Training Squadron operations at Sheppard Air Force Base.

The group was met at the Missile Road entrance and taken to the ordinance range by Senior Airman Ryan Barta.

They learned about ordinance detonation from Master Sgt. Jason Putman, Tech Sgt. Adam Wade, and Staff Sgt. Eric Ybarra. They then observed (and felt) a 100-foot long detonation cord explode, as well as explosions of TNT and C4.

Following the ordinance demonstrations, the group toured the 363rd Training Squadron with Col. Anthony Puente and Capt. Pedro DeLeon.

They learned about the role the squadron has in training airmen and airwomen concerning ordinance, bombs and nuclear weapons. Leading the training were Sgt. Desmond Ojeda and Sgt. Chandler Vasquez.

Students learn how to build weapons, store weapons, and load weapons on different aircraft.

The group also learned about the different weapon systems found on F-16, F-15, A-10, B-1, B-52 and other Air Force aircraft.

Association members participating in the tour included Doug McCulloch, Chuck Vergauwen, Stan Mountain, Charles Barr, Chase Radillo, Mason Adams, Steve Hinson, Alan Hinson, Sharon Tucker, Harold Newton, Scott Hollars, Teri Gibson, and Lee Grace.

Because we are committed to the success of the builder industry.

When you work with Stewart, you get more than just our years of experience benefitting your business. You get knowledgeable, full-time, dedicated associates working alongside you at your job sites, in the community, as well as with local, state and national builder associations, and political action committees.

Contact us for more information about why Stewart Title is the right partner for you.

Randy Schaffner Stewart Title Company of Wichita Falls 2733 Midwestern Parkway, Suite 100 Wichita Falls, TX 76308

(940) 691-5600

by charlie cook

The Home Front

Despite the housing slump, Americans of all political persuasions have a visceral desire to own their own home.

Last week’s confirmation that the gross domestic product grew only 1.8 percent in the first quarter came when economists were already busily revising their growth forecasts downward for the rest of this year. A doubledip recession remains unlikely, but this is the weakest recovery since the Great Depression and the first one not being led by housing. The nearly moribund housing sector is, in fact, weighing down the recovery.

The conundrum is very real. On the one hand, the subprime-mortgage crisis and easy money—loans with minimal down payments and scant documentation—brought the U.S. economy to its knees just three years ago.

Clearly, changes had to be made to prevent that from recurring. On the other hand, housing-industry leaders now fear that the pendulum is swinging too far the other way, potentially decimating an already battered sector and further stifling the anemic recovery. Although we hear the perennial debate over limiting the homeowners’ mortgage-interest deduction, which would hurt the middle and higher end of the housing market, other proposed regulations really terrify the industry.

These rules include increased down-payment requirements and loan restrictions for all but those with near-bulletproof credit ratings.

A bipartisan national poll of 2,000 likely voters to be released next week by the National Association of Home Builders makes clear the unique position that homeownership holds in Americans’ minds and the delicacy required in dealing with the issue.

The May 3-9 telephone survey, conducted by Celinda Lake and Jonathan Voss of the Democratic polling firm Lake Research Partners and by Neil Newhouse and Robert Blizzard of the GOP outfit Public Opinion Strategies, found that 75 percent of voters believe “that owning a home is the best long-term investment they can make and is worth the risk of ups and downs in the housing market.”

Interestingly, a high percentage of people in different financial situations felt this way, including 81 percent of those who own their homes outright, 76 percent with mortgages, 67 percent who are renters, and 65 percent with underwater mortgages. Respondents were also asked whether they would recommend buying a house to a close friend or family member just starting out. Eighty percent of all voters said yes, including 78 percent who had underwater mortgages. Seventy-three percent of the respondents who do not own a home said that their goal is to eventually buy one. Clearly, the decline in home values

Slow growth: The housing sector is weighing down the recovery.

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and economic turmoil have not diluted their dream of homeownership and the aspirational element that makes the notion a core value.

Some have suggested that the government end tax incentives for homeowners, but the survey suggests a hostile voter reaction to that plan. Told that “since the federal income tax was introduced in 1913, the federal government has used the tax code to encourage homeownership,” respondents were then asked: “In general, do you think it is appropriate and reasonable for the federal government to provide tax incentives to promote homeownership, or do you think it is not a good idea?” Seventy-three percent of all voters thought those incentives should be provided, including 71 percent of Republicans, 68 percent of independents, 79 percent of Democrats, and even 68 percent of those who support the tea party movement.

When asked about requiring a 20 percent down payment to purchase a home, respondents split evenly, with 49 percent supporting such a threshold and 49 percent opposing it. But among those most likely to be affected, mortgage holders and renters ages 18 to 54, opposition was strong, with 58 percent of younger mortgage holders and 59 percent of younger renters opposed to adding that hurdle to buying a home.

Given this kind of visceral connection to homeownership, it’s not surprising that 71 percent of respondents oppose eliminating the mortgage-interest deduction and 63 percent oppose lowering it. Moreover, 58 percent oppose eliminating the deduction for homeequity loans or limiting the deduction for those who earn more than $250,000 a year. Fiftyseven percent of voters said they would be less likely to support a candidate for Congress who wanted to eliminate the mortgage-interest deduction; only 26 percent said they would be more likely to support such a candidate.

These numbers are pretty much across the board: Sixty-three percent of Republicans, 56 percent of independents, 55 percent of Democrats, 61 percent of tea party supporters, and 58 percent of those voters in congressional districts held by freshman Republicans would be less likely to support a candidate who favored killing the deduction. With the unusually large sample, the pollsters segmented respondents who live in congressional districts that The Cook Political Report rates in the swing category. Fifty-eight percent of that group were less likely to support such a candidate, with 56 percent of those voters in swing Senate states and 54 percent in states that The Washington Post’s Chris Cillizza rates as swing presidential states.

The clear message is that owning a home is among the values that Americans most cherish—an important part of the American Dream. n j u n e 4 , 2 011 nationa l jou r na l

photo: get t y images /justin sullivan

The Cook Report

JULY Birthdays

Mike Lewis.........................................................................10 Beverly Wyatt....................................................................18 Brian Hooker......................................................................20 Travis Partee......................................................................22 Robbie Shaver...................................................................25 Patrick Pond......................................................................25

940-723-0944 Serving This Area Since 1946

CHRIS•DOCKMAN•COMPANY 2071 FM 171 Wichita Falls, Texas 76305 Phone & Fax (940) 767-9710 Cell (940) 704-3471 Jerry Fillmon, Owner/Manager

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1920 Elmwood North Ave. • Wichita Falls, Texas 76308 (940) 720-5200 • (940) 691-3199 Fax Jean Taylor, CESA

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Operations Mgr. / Escrow Officer (940) 720-5203

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HOUSING HALL OF HONOR OPEN TO ALL MEMBERS

2801 Kell East

Phone (940) 692-5734

Wichita Falls

Fax (940) 692-0391

Texas 76308

Lane Landes, Owner

tco@wf.net

We are accepting applications for the Housing Hall of Honor. The nominee does not have to be a builder.

This Honor is to celebrate men and women who have made significant and lasting contributions to the housing industry. You may obtain a copy of the guidelines and application by visiting www.nthba.com or call the NTHBA office at 692-2211 and request a copy. Please take this opportunity to nominate someone who deserves to be honored in our industry.

Deadline for applications will be July 25, 2011 by 5:00 p.m.

Thanks for Renewing!

MORRISON SUPPLY............................................. Robbie Shaver FERGUSON–VERESH.............................................John Ferguson ATMD INSURANCE................................................. Jamie Harris TIMES RECORD NEWS................................................Lee Grace STEWART TITLE COMPANY...............................Randy Schaffner HORIZON HOMES................................................. Larry Walters

Long Name.

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Ralph Dunkelberg III Vice President Mortgage Services 1300 Tenth Street • 723-0771 1401 Holliday • Wichita Falls, TX 76301 940-720-8054 • Cell 940-704-1789 Fax 940-720-8071 Email ralph.dunkelberg@usfcu.us

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522 Beverly Drive Wichita Falls, Texas 76309

723-1436