FHA Programs (Federal Housing Administration) - Issue Summary
|
|
| What is the fundamental issue? |
| Major reforms to the FHA single-family mortgage insurance program were achieved in 2008. These include increases in the loan limits, streamlining of condominium purchases, increases in allowances for energy-efficient mortgages, easing purchase with manufactured housing, increases to HECM loan limits, and a new HECM for purchase loan product. However, these advances, and changes in market conditions have greatly increased FHA's market-share. FHA continues to operate with 30-year old technology and limited staffing resources. FHA must be allowed to use their reserves or receive a federal appropriation to upgrade their systems and increase personnel in order to meet the increased demands and capacity. |
|
| I'm a Realtor®. What does this mean to my business? |
| The FHA single-family mortgage program has played an important and vital role in the mortgage marketplace. The FHA program has a public purpose obligation to provide mortgage insurance to American families who choose FHA to meet their homeownership needs. Increasing the capacity of FHA will insure it is a viable product for homebuyers and expands the pool of available safe and affordable loan products. |
|
| NAR Policy: |
| NAR is a strong supporter of the single- and multi-family programs administered by the Federal Housing Administration (FHA). However, FHA’s market share has diminished considerably threatening its ability to serve its public purposes. NAR is working with the Department of Housing and Urban Development (HUD) to modernize FHA to enhance its effectiveness in today’s mortgage marketplace. |
|
| Legislative/Regulatory Status/Outlook: |
| H.R. 3146, the “21st Century FHA Housing Act of 2009”, introduced by Reps. Adler (D-NJ) and Lee (R-NY) provides additional resources to FHA to upgrade technology and hire additional qualified staff. The bill also makes some improvements in the areas of risk management, and provides flexibility for FHA to promote foreclosure prevention programs. This will ensure millions of Americans can maintain the dream of homeownership without requiring another emergency bailout. This legislation was introduced on July 9, 2009 and has been referred to the House Financial Services Committee. |
|
| Related Information: |
www.realtor.org/fha
NAR Statement on the Strength of the Federal Housing Administration |
 Link to Thomas
|
