Today I received the following email from NAMB:

LEGISLATIVE BULLETIN ALERT   House Passes FHA Reform Legislation
NAMB Success! Bill Includes Bond Provision.  

Today, the U.S. House of Representatives passed H.R. 1852, the Expanding American Homeownership Act of 2007 by a vote of 348-72. The measure was originally introduced by Representative Maxine Waters (D-CA), Chairwoman of the Subcommittee on Housing and Community Opportunity, and Barney Frank (D-MA), Chairman of the Financial Services Committee. NAMB applauds passage of H.R. 1852 and will continue our efforts to get similar legislation passed in the U.S. Senate. H.R. 1852 would allow mortgage brokers to post a surety bond instead of meeting the audit requirements. This approach would ensure the FHA program is protected and addresses the cost concerns for many brokers.

H.R. 1852 would also increase the FHA loan limits to better accommodate those borrowers living in high-cost areas of the country. FHA Reform now moves to the U.S. Senate, and if passed the reconciled bill will go to the President for signature.

While most of the provisions seems like it will help the borrower, it seems to me that allowing a meaningless surety bond in place of the audit seems like it will eventually hurt both the borrower and tax payer.  FHA is taking on more risk by increasing loan amounts, and easing underwriting guidelines, easing the broker criteria seems drastic. 

What do you guys think?