Buyers Rush and Overwhelm Lenders on 11/30? MBA Chairman thinks so.

Mortgage Banker Association (MBA) chairman David Little says extend, and expand home buyer credit In an Op Ed. article in the USA Today, Little suggests that lenders will be overwhelmed by the rush of borrowers intent on closing on their home purchases before credit expires.

Little states in his letter, “Congress needs to act quickly [with regards to extending the tax credit] in order to avoid a rush of borrowers overwhelming lenders and settlement service vendors by demanding to close before the tax credit expires on Nov. 30″.

Also, echoing the thoughts of CEO of Realogy, the mortgage Chairman also suggests expanding the credit to include move-up buyers. He also notes that according to the National Association of Realtors, new homebuyers spend an average of $5000 more per household than current homeowners. This fact, Little alludes, is a key stepping stone to improving the nations current economic status.

According to a recent survey of homebuyers, “the tax credit was a primary motivation for almost 11%” of them. To date, 1.14 million people have already filed for it.

Source: USA Today