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Foreclosures on the rise ... Could it be a good thing?

National Mortgage Professional
Jul 30, 2007

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.
Published
Jul 30, 2007
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