NAMB supports passage of Expanding American Homeownership Act of 2007MortgagePress.comExpanding American Homeownership Act of 2007
The National Association of Mortgage Brokers lauded passage by
the U.S. House Financial Services Committee of HR 1852, the
Expanding American Homeownership Act of 2007, which will make the
Federal Housing Administration (FHA) loan programs available to
more consumers and better able to compete with non-prime loans.
"Chairman Barney Frank and Congresswoman Maxine Waters showed
great vision in introducing this bill, which contains so many
provisions to improve access to affordable housing in America,"
said NAMB President Harry Dinham, CMC. "This is a great day for
consumers, as there will be broad access throughout the country for
FHA loan products."
NAMB particularly supports an amendment, introduced by Rep. Gary
Miller and co-sponsored by Reps. Randy Neugebauer and David Scott,
that will increase the number of originators who can offer FHA
loans by removing the cumbersome and costly requirement for an
annual audit of participating mortgage brokers. Committee members
voted to replace it instead with the option to supply proof of a
$75,000 surety bond.
"As the mortgage market continues to correct itself, there are
consumers, especially in the non-prime market, who need access to
the secure and safe loans that FHA insures," said Dinham. "If
signed into law, this historic legislation will have an immediate
and profound effect on the people who need it most."
Dinham said that together with state-licensing requirements for
eligible mortgage brokers, annual bonding would maintain the FHA's
framework of responsibility and accountability, while removing
barriers to broker participation. The association believes this
change would greatly increase broker participation. Since brokers
originate more than 50 percent of loans nationwide, this would be
good for consumers.
NAMB also continues to support adjusting the current FHA loan
amounts for high-cost areas. Dinham said that FHA loan limits
should be equivalent to 100 percent of the median home price. He
noted that tying the FHA loan limit to the median home price and
letting it float with the housing market will make the loans an
even more attractive option for consumers.
HR 1852 will now go to the full House of Representatives for
consideration before being sent to the Senate. While some technical
corrections need to be made, Dinham said NAMB looks forward to
working with Congress to develop legislation that will ensure the
safety and soundness of the mortgage industry in its ability to
meet America's housing needs.
For more information, visit www.namb.org.