Quantcast
Home / Government / House passes bill to strengthen FHA

House passes bill to strengthen FHA

WASHINGTON (AP) — The House has passed legislation to strengthen the financial position of the Federal Housing Administration, a key source of financing for low-income and first-time homebuyers.

The measure would set a minimum rate for the annual premiums paid for mortgage insurance, exclude unscrupulous lenders from the program and require those who commit fraud to repay the FHA.

The FHA’s reserve money, which insures more than $1 trillion worth of mortgages, is near depletion.

The bill, sponsored by Republican Rep. Judy Biggert of Illinois, sets the minimum rate at 0.55 percent of the mortgage balance and gives the housing secretary discretion to raise that to 2.05 percent.

Last December Congress agreed to raise the FHA’s mortgage insurance premium to pay for a temporary extension of the payroll tax cut.

Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Leave a Reply

Your email address will not be published. Required fields are marked *

*