The National Association of Realtors has also called upon Congress to enact legistlation that will conform to today's mortgage environment and enable the FHA to recapture significant market share.

"The FHA program makes it possible for higher-risk, yet credit-worthy borrowers to get prime financing. "By offering access to prime rate financing, FHA provides borrowers a means to achieve lower monthly payments, without relying on interest only or ‘optional' payment schemes,"

When the housing market was in turmoil during the 1980s, FHA continued to insure loans when others left the market. In the past, FHA's availability has helped to stabilize housing markets when private mortgage insurance has been nonexistent or regional economies have faltered. FHA is the only national mortgage insurance program that provides financing to all markets at all times.

Now, more than ever, FHA needs to be strengthened to continue to be useful and available to borrowers. FHA is a leader in preventing foreclosures."

Source: National Association of Realtors