PRESS RELEASE
Posted on: June 23, 2007

Contact:
Jodi Greenblatt
(703) 342-5842

FHA Commissioner Addresses NAMB Leadership at Seattle Convention
Stresses Importance of New Reforms for FHA, RESPA and Affiliated Business Arrangements


Seattle, Washington - June 23, 2007 - U.S. Federal Housing Administration Commissioner Brian Montgomery yesterday revealed his top priorities for the remainder of the year during a speech to the National Association of Mortgage Brokers (NAMB) at the group's annual convention in Seattle, Washington.

Montgomery, who oversees the federal government's $400 billion FHA mortgage insurance program, said he believes FHA loans are part of the answer to address rising foreclosure rates. Montgomery noted that he is working on rule changes that would allow highly qualified FHA-approved lenders to use non-FHA approved mortgage brokers and expand consumer access to affordable loans.

"It's no secret that NAMB has been a tremendous partner to FHA," said Montgomery. "Over the last three years, the top ten mortgage brokerages originated more than 70,000 FHA loans. I want you to know how much I appreciate your hard work."

Montgomery noted that recent rule changes have already increased broker originations of FHA loans. However, he and Dinham encouraged Congress to pass existing legislation that would eliminate existing barriers to further broker participation and increase access to FHA loans for consumers.

"FHA is an important program that, with a little help, could be an even more effective solution for hundreds of thousands of Americans," said President of NAMB Harry Dinham. "Commissioner Montgomery and his staff are making it easier for mortgage brokers to be FHA originators and we look forward to the even better access that proposed changes will bring."

During his speech, Montgomery said he expected to introduce new reforms to the Real Estate Settlement Procedures Act by year's end, and thanked NAMB for its ongoing efforts to improve consumer education through simplified mortgage disclosures that help customers avoid sticker shock when loan rates reset.

The Commissioner closed out his speech by focusing on false incentives that some home builders offer to consumers through their affiliated companies which provide mortgage and title services. Montgomery credited NAMB with bringing these sham arrangements to HUD's attention. He said that he will be organizing a joint meeting with all industry stakeholders to further discuss the issue as soon as he returns to Washington and he anticipates new rules will soon be forthcoming to address the problem.

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The National Association of Mortgage Brokers is the voice of the mortgage broker industry with more than 25,000 members in all 50 states and the District of Columbia. NAMB provides education, certification and government affairs representation for the mortgage broker industry, which originates over 50% of all residential loans in the United States.

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