David G. Kittle, CMB, chairman of the Mortgage Bankers Association (MBA), has issued the following statement following passage in the House of Representatives of HR 3527, the FHA Multifamily Loan Limit Adjustment Act and HR 3146, 21st Century FHA Housing Act: "Passage of these two bills is further indication that the House is playing a proactive role in helping people who are being impacted by the current turbulence in the housing market.
"Increasing the multifamily loan limits for structures with elevators is an important step to growing this country's supply of affordable rental housing in urban areas. The increased limits will make it possible for developers to obtain financing to build and rehabilitate high-rise housing.
"Additionally, providing more resources for staffing and technology at FHA will allow that agency to continue to play its critical role in helping borrowers who may not have sterling credit or are unable to make a large down payment. FHA needs to be able to hire and retain top quality staff and utilize 21st century technology if it is going to meet the growing demand for its products and adequately manage risks to its programs.
"And finally, we are gratified to see Congress go on record in stating that HUD, Treasury and the FHFA ought to use their existing statutory and regulatory authority to help solve the crisis in warehouse lending. Independent mortgage lenders, who rely on warehouse lending, provide between 25 and 40 percent of all mortgage financing. Without adequate warehouse lines, these lenders may cease to exist, drawing precious capacity out of the mortgage market at a time when we need mortgage financing more than ever.
"We hope the Senate will consider these bills quickly."
To read and track HR 3527, the FHA Multifamily Loan Limit Adjustment Act, click here.
To read and track HR 3146, 21st Century FHA Housing Act, click here.