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FHA's products are complicated, its methods are outdated and its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.
