House Passes H.R.1852, FHA Modernization

On the same day that the Federal Reserve cut the discount rate by half a percentage point, the U.S. House of Representatives passed the Expanding American Homeownership Act of 2007, H.R.1852.

The legislation will offer home buyers a safer alternative to risky mortgage products and help many homeowners who may be facing foreclosure, and the combination of efforts could have a positive impact on the housing market and consumer confidence.

"NAR appreciates the efforts of House Financial Services Committee Chairman Barney Frank, D-Mass., and Rep. Maxine Waters, D-Calif., for their leadership in protecting the interests of America's homeowners and those who strive to own their own home," says National Association of Realtors president Pat V. Combs.

"NAR has long supported FHA modernization legislation that increases loan limits, eliminates the statutory three percent minimum cash down payment, and gives FHA the flexibility to provide risk-based pricing. NAR also supports the continued availability of FHA loss mitigation programs," he adds.


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