FHA Reform Act Passes House

A Reform Act of 2010 was passed by the House of Representatives by a 406-4 vote Thursday. The bill, sponsored by Rep. Maxine Waters, D-Calif., would give the Federal Housing Administration (FHA) authority to, among other provisions, increase annual premiums to 1.55% and to withdraw originating and underwriting approval for a lender based on the performance of its regional branches. The FHA says that reforming the insurance-premium rules to shift some of the up-front cost to the annual premium would increase the agency's capital reserves and reduce risks to the FHA insurance fund. ‘I am grateful to the members of Congress who worked diligently on this bill – specifically, Housing and Community Opportunity Subcommittee Chair Maxine Waters, Financial Services Committee Chair Barney Frank and Subcommittee Ranking Member Shelley Moore Capito,’ U.S. Department of Housing and Urban Development Secretary Shaun Donovan said in a statement. ‘We look forward to quick action by the Senate on this proposal to encourage responsible homeownership while further reducing risk to the American taxpayer.’ SOURCES: [link=http://thomas.loc.gov]The Library of Congress[/link], [link=http://portal.hud.gov/portal/page/portal/HUD/press/speeches_remarks_statements/2010/statement-061010]HUD


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