On Wednesday September 19th -  The Chairman of the Banking, Housing, and Urban Affairs Committee had announced that the Committee had passed the FHA Modernization Act of 2007. Legislation that seeks to help American families that have been hit hard by the current mortgage market crisis, including those that currently face the threat of foreclosure and those who may be seeking financing to buy a new home.

*Increases FHA single-family loan limits 100% of the median home price of an area or the conforming loan limit that is currently $417,000, whichever is lower.

*Downpayment Requirements Reduced to 1.5% from the current requirement of about 3%, depending on an assortment of factors. Sets the maximum loan amount of 100% of the appraised value of the home.

*Simplifies FHA requirements for condominiums so that FHA can be used more effectively to purchase condos

*Expands the FHA HECM senior reverse mortgage program. The legislation sets one national loan limit equal to the conforming loan limit (currently $417,000). In addition, the legislation lowers the origination fee from 2% to 1.5%, a cut of 25%.