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Repurchase demands: The damaging impact on your net worth

Jul 29, 2007

House Financial Services Committee approves FHA reform billMortgagePress.comExpanding American Homeownership Act of 2007, NAMB, MBA Bill passes by a 45-19 margin and moves on to House floor On May 3, the U.S. House Financial Services Committee (HFSC) passed HR 1852, the Expanding American Homeownership Act of 2007. The bill was introduced by Rep. Maxine Waters (D-CA) and co-sponsored by HFSC Chairman Barney Frank (D-MA). The committee approved the bill by a vote of 4519 and will now move to the House floor for consideration by the entire chamber. For the National Association of Mortgage Brokers members, the most important provision in HR 1852 is one that will allow mortgage brokers to choose between posting a $75,000 surety bond or satisfying the current audit and net worth requirements to originate Federal Housing Administration (FHA) loans. This surety bond provision was introduced as an amendment by Rep. Gary Miller (R-CA), and was co-sponsored by Reps. Randy Neugebauer (R-TX) and David Scott (D-GA). Another important provision in the bill will increase the FHA loan limits in high-cost areas. NAMB believes it is important for borrowers to have a real opportunity to take advantage of the FHA loan program. We support increasing FHA loan limits to 100 percent of the median home price and we believe it is critical to increase mortgage broker participation in FHA. The surety bond provision in HR 1852 will encourage more brokers to offer FHA loans and help FHA reach more of the first-time, minority and non-prime borrowers the program was intended to serve. "I want to thank Chairman Frank and the members of the committee for getting this bill moving and furthering the debate," said John M. Robbins, chairman of the Mortgage Bankers Association. "A revitalized FHA is crucial to helping low- and moderate-income and first-time homebuyers realize the American dream of homeownership. The fact of the matter is that FHA's products are complicated, its methods are outdated and its technology is antiquated, as evidenced by the sharp decline in their market share in recent years." For more information, www.financialservices.house.gov.
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Jul 29, 2007
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