Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development,

said that the Federal Housing Administration will permit its lenders to allow

homeowners to use the $8,000 tax credit as a down payment.
     Donovan's remarks came in an address to several thousand Realtors® gathered

Tuesday morning at The Real Estate Summit: Advancing the U.S. Economy, a special

day-long session at the Realtors® Midyear Legislative Meetings & Trade Expo.
Secretary Donovan said that important changes, which the National Association of
Realtors® has been calling for, will help consumers purchase a home. "We all want to

enable FHA consumers to access the home buyer tax credit funds when they close on their

home loans so that the cash can be used as a down payment," Donovan said.
According to Donovan, the FHA's approved lenders will be permitted to "monetize"
the tax credit through short-term bridge loans. This will allow eligible home buyers to

access the funds immediately at the closing table. Donovan said the Obama

administration plans to further stabilize the housing market.
     "I do think we have some early signs that the market overall is stabilizing," said

Donovan. "Since January we've seen both home sales moving up and down around a

relatively stable number, and we are seeing the first signs that the rapid decline in

home prices is starting to abate."
     NAR President Charles McMillan, a broker with Coldwell Banker Residential

Brokerage
in Dallas-Fort Worth, said, "As the leading advocate for housing issues and

homeownership,
     NAR continues to take a leadership role in promoting ideas for improving our

economy by stabilizing the housing and real estate markets. Today we have the best of

the best to begin a dialogue, develop solutions, and initiate action toward real estate

and economic recovery."
     The morning session included a panel discussion that was moderated by CNBC's Ron

Insana. The 13 panelists and Realtors® in attendance examined cutting-edge solutions

necessary to promote and preserve homeownership and real estate development, stimulate

the economy, and protect the nation's taxpayers. They also shared their ideas on what

the role and responsibility of the federal government is in the revitalization effort.
     The list of distinguished panelists include Dr. Martin Feldstein, professor of

Economics
from Harvard University; Dr. Barry Bluestone, professor of Political Economy from
Northeastern University; John Taylor, CEO of the National Community Reinvestment
Coalition; Maria Kong, president of the National Association of Real Estate Brokers;
and Sarah Rosen Wartell, executive vice president for the Center for American Progress.
     "Right now the Federal Reserve is the market," said Jay Brinkman, chief
economist for the Mortgage Bankers Association. "What will be the effect when the
Fed stops buying?" Brinkman explained that an exit strategy must be planned for the
long-term; the federal government cannot continue to support the mortgage markets
indefinitely.
     "We must make sure FHA and the GSEs are supported," added the Wharton
School's Susan Wachter. "We are thrilled that so many high-caliber individuals were

able
to join us today at this important meeting to promote stability in the housing
market and the U.S. economy,"
     NAR President McMillan said. "We look forward to an ongoing dialogue and action

toward this goal, during our midyear meetings this week and beyond."