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Senate FHA Bill Would Boost Homeownership Opportunities
Senator Jim Talent (R-Mo.) on June 19 introduced legislation that would update and modernize the Federal Housing Administration's single-family mortgage insurance programs and help spur housing opportunities for America’s working families.
S. 3535, the “Expanding American Homeownership Act,” has the strong support of NAHB and would increase the FHA’s flexiblity to mold its mortgage insurance programs to help first-time home buyers, minorities and low- and moderate-income families to obtain the necessary financing to purchase a home.
NAHB submitted written testimony in support of the measure at a June 20 hearing before the Senate Subcommittee on Housing and Transportation.
The written statement noted that FHA’s current loan limit structure, downpayment requirements and mortgage insurance premium scales seriously constrain its ability to deliver the range of mortgage products that are needed for the agency to fulfill its mission.
Co-sponsored by Senators Mel Martinez (R-Fla.), Johnny Isakson (R-Ga.) and Saxby Chambliss (R-Ga.), S. 3535 contains several provisions supported by NAHB. It would:
- Increase the limit for FHA-insured mortgages in high-cost areas.
- Grant FHA flexibility to establish zero, or reduced, downpayment requirements for its single-family programs.
- Allow FHA to establish a risk-based mortgage insurance premium pricing structure.
- Permit FHA to extend the maximum loan maturity to 40 years.
- Revise FHA’s requirements for condominium loans, which are often burdensome and differ significantly from mortgage loans for detached single-family homes.
The House Financial Services Committee on May 24 approved similar legislation, H.R. 5121, and the measure is now awaiting consideration before the full House.
NAHB Executive Vice President and CEO Jerry Howard testified in support of H.R. 5121 before the House Financial Services Committee’s Housing and Community Opportunity Subcommittee in early April. He noted that these provisions would give FHA a greater ability to respond to the needs of borrowers and enable more working families to become home owners.
To view the legislation, click here and type the bill number in the center screen box.
For more information, e-mail Scott Meyer at NAHB, or call him at 800-368-5242 x8144.
 Attend the 2006 State & Local Government Affairs Conference
Plan to attend the 2006 State and Local Government Affairs Conference, Nov. 9-11, in New Orleans. Register today and join home builders association staff and builders to learn about the hottest housing issues.
For more information, click here.
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