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FHA "Solvency" Bill Goes to Full Senate

by devteam August 1st, 2013 | Share

Senate Bill 1376, A bill to improvernthe Federal Housing Administration and to ensure the solvency of thernMutual Mortgage Insurance Fund, has been passed out of the SenaternBanking Committee on a nearly unanimous vote. The bill, proposed byrnBanking Committee Chairman Tim Johnson (D-SD) and Mike Crapo (R-ID)rnwould raise the minimum capital reserves ratio of thernFederal Housing Administration’s to 3 percent, require minimum annualrnmortgage insurance premiums for the FHA guarantee and annualrnreassessment of those fee levels, and give the agency morernenforcement tools to use in dealing with lenders. </p

The bill passed the committee by a voternof 21 to 1 with Tom Coburn, (R-OK) the only dissenting vote. If itrnpasses the full Senate it will then probably have to be reconciled</bwith a housing bill sponsored by Jeb Hensarling (R-TX), the chair ofrnthe House Financial Services Committee, that has as its centerpiecernthe liquidation of Freddie Mac and Fannie Mae. Hensarling'srnlegislation would also limit government guarantees to those issued byrnFHA, eligibility for which would also be further restricted. </p

Johnson said, “This bill will givernthe Federal Housing Administration the tools it needs to get back onrntrack, so it can continue to help qualified borrowers realize therndream of homeownership and provide stability to the housing market inrntimes of stress. This was a bipartisan effort from start to finish. rnThe reforms we approved today are the product of a lot of hard workrnfrom members on both sides of the aisle, and I appreciate the spiritrnof bipartisanship and open debate that my colleagues on the Committeerndemonstrated throughout the amendment process.”

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About the Author

devteam

Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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