WASHINGTON, DC – September 15, 2009 – (RealEstateRama) — The U.S. House of Representatives today unanimously approved bipartisan legislation introduced by Congressman John Adler (D-NJ) and Congressman Chris Lee (R-NY) to modernize the Federal Housing Administration (FHA). H.R. 3146, the 21st Century FHA Housing Act of 2009, would provide the FHA with the tools it needs to effectively underwrite mortgages and monitor lenders participating in the program.
“This bipartisan legislation implements a number of smart, common-sense reforms that will help responsible borrowers gain access to safe, affordable mortgages,” said Congressman Lee. “We cannot keep the dream of homeownership within reach of working families unless we have an FHA that works better.”
FHA is currently one of the primary sources of safe affordable mortgage financing for American families. During recent years, as private lenders fled the market, the demand for FHA mortgages grew exponentially. In order to meet demand and retain its mission of fostering sustainable homeownership, several legislative changes are needed to fully modernize the program.
The National Association of Realtors, the Mortgage Bankers Association and the National Association of Homebuilders have all endorsed the Adler-Lee legislation. In a joint letter the organizations stated that it “will make it easier for first-time homebuyers and hard-working families to purchase a home by ensuring FHA continues to have the ability provide safe, affordable mortgages, at no cost to the American taxpayer.”
On July 9, 2009, Congressmen Alder and Lee introduced H.R. 3146, the21st Century FHA Housing Act of 2009.This bipartisan legislation will protect taxpayers and reduce fraud and abuse.
Key provisions of H.R. 3146:
- Addresses concerns about proper review and oversight of FHA lenders and loans by improving target reviews of loan performance.
- Ensures that FHA has the staff, technology and risk management processes in place to protect the American taxpayer from unacceptable losses.
- Provides the HUD Secretary with the authority to implement new ideas to minimize foreclosures through demonstrations involving short sales and deeds in lieu of foreclosure.
Visit http://chrislee.house.gov to learn more about New York’s 26th Congressional District and Congressman Lee’s efforts to promote responsible homeownership.
