NAR: FHA Reforms Would Open Doors to Homeownership for Millions of Hard-Working Families

Bill would raise FHA loan limits and extend possible terms from 30 to 40 years
RISMedia
The National Association of Realtors(R) strongly supports the passage of the Federal Housing Administration reform package approved yesterday in a mark-up vote by the House Financial Services Committee led by Congressman Bob Ney (R- Ohio) and Congresswoman Maxine Waters (D-Calif.).

H.R. 5121, the Expanding American Homeownership Act of 2006, would raise FHA loan limits, eliminate restrictive down payment requirements, provide risk based mortgage insurance premium flexibility, and extend the possible terms of FHA loans from 30 years to 40 years. All of these changes will help make homeownership more attainable.

"The Expanding American Homeownership Act will make FHA a more viable tool for first-time home buyers and lower and moderate income families and many others pursuing the dream of homeownership. It is also the most substantive FHA reform legislation undertaken by Congress in over 15 years. Not only will hundreds of thousands of additional families have the opportunity to own their own home, but this legislation will improve FHA's relevance and competitiveness in the housing market," said Congressman Ney following today's successful committee mark-up.

"On a typical loan, these changes will save many families hundreds of dollars per month -- opening the door to the American Dream for thousands," said NAR President Thomas M. Stevens. "We commend the House Financial Services Committee for taking this important step to make FHA once again competitive in the home mortgage arena. With interest rates climbing and housing prices at all time highs, it is imperative to have a modernized, effective FHA product."

NAR also announced the formation of a coalition designed to help move this legislation ahead in Congress. The Coalition for a Strong FHA, led by NAR, is made up housing industry leaders including the National Association of Home Builders, National Council of State Housing Agencies, National Alliance of Independent Mortgage Bankers/Lenders One, National Association of Hispanic Real Estate Professionals, National Association of Real Estate Brokers, National Association of Local Housing Finance Agencies, Asian Real Estate Association of America, and the Strategic Alliance for Mortgage Subsidiaries.

The coalition is expected to become an advocacy force for the housing market. The coalition's mission is to ensure FHA reform is enacted and that it becomes a competitive option. Additional information regarding the coalition is available at www.strongfha.org.

"For over 70 years, the Federal Housing Administration has made homeownership possible for millions of Americans at no cost to taxpayers. With the proposed reform legislation, FHA will continue to make homeownership available for millions," said Stevens.

NAR and its Coalition for a Strong FHA partners urge House Members to cosponsor this legislation and urge the House leadership to schedule time for House floor consideration as quickly as possible following the Memorial Day recess.

The National Association of Realtors(R), "The Voice for Real Estate," is America's largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.

Information about NAR is available at www.realtor.org. This and other news releases are posted in the Web site's "News Media" section in the NAR Media Center.