| FHA Reform passes House and Senate Banking Committee |
| In the month of September, both the House of Representatives and the Senate Banking Committee passed versions of an FHA reform package that NAR has been strongly supporting for several months. The House version, entitled "Expanding American Homeownership Act of 2007" passed with a strong majority of 348-72, and includes provisions that would eliminate the 3% down payment requirement, increase the loan limits, streamline condominium purchases, and eliminate the cap on Home Equity Conversion mortgages (HECMs). The House bill also includes provisions for a National Affordable Housing Trust fund, and provisions allowing risk based pricing on FHA insured loans. A similar, but not as far reaching, bill passed the Senate Banking committee but has yet to be considered by the full Senate, although it is expected to be brought to the floor in October. After it is passed, it will be sent to a conference committee where the two versions of the bill will be reconciled. NAR staff created a comparison document that outlines the differences between current law, the bill that passed the House, and the bill that passed the Senate banking committee. Contact Megan Booth or Jerome Nagy with any questions |
Information provided by NAR
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